By Kavita Mistry 
India’s banking, financial services, and insurance (BFSI) sector is preparing for a significant IPO fundraising wave, targeting around ₹58,000 crores in 2025. This surge is mainly driven by regulatory mandates set by authorities such as the RBI and SEBI, which require large financial entities—including insurance companies, non-banking finance companies (NBFCs), and asset reconstruction companies—to seek public listings. So far this year, three BFSI firms have already raised ₹16,765 crores, accounting for over 21% of total IPO proceeds. In the coming months, at least fifteen more BFSI companies are expected to enter the IPO market, contributing to a pipeline that, across all sectors, exceeds ₹2.7 trillion.
Fintechs and Traditional Giants Drive India’s BFSI IPO Boom
Major upcoming BFSI IPOs include Tata Capital at ₹17,000 crores, ICICI Prudential Asset Management at ₹10,200 crores, and Billionbrains Garage Ventures (Groww’s parent) at ₹6,000 crore. Digital payments leader PhonePe has also confidentially filed to raise as much as ₹12,000 crores, underscoring the rise of fintech brands alongside traditional players. Analysts point out that these IPOs are expected to garner strong investor interest due to abundant market liquidity and the consumer-oriented nature of new-age financial models, though much will depend on market conditions and issue pricing.
The active pipeline also reflects private equity funds seeking exits, especially as fintechs like Groww and Pine Labs are set to raise about ₹12,000 crores collectively. The sector has seen considerable consolidation, leaving only a handful of powerful broking and payment firms. In recent years, however, IPO investors have become more selective, preferring ventures with clear paths to profitability rather than merely high-growth narratives.
Retail Investors Eye Listing Gains as Regulatory Push Keeps BFSI IPOs in Focus
Retail investors remain focused on listing gains, with less emphasis on distinguishing between fintech and traditional BFSI IPOs. While BFSI’s share of IPO fundraising has declined from its peak in 2020, strong capital requirements and continued regulatory pushes ensure the sector stays at the forefront of India’s capital markets activity.
Summary:
India’s BFSI sector is driving a major IPO wave, targeting ₹58,000 crore fundraising in 2025. Regulatory mandates and capital needs push more listings, including big names like Tata Capital and PhonePe. Fintechs and private equity exits fuel activity, while retail investors focus on listing gains over firm fundamentals.