India’s BFSI (Banking, Financial Services, and Insurance) sector is on the verge of an IPO boom. As of September 2025, the IPO pipeline has swelled to a massive ₹60,000 crore, led by industry giants Tata Capital and PhonePe. This surge represents a landmark moment for the Indian financial markets, offering investors diverse opportunities.
Tata Capital IPO: A Mega Offering
Fundraising Target: Tata Capital plans to raise ₹17,200 crore ($2 billion) through a combination of fresh issue (21 crore shares) and offer-for-sale (26.58 crore shares).
Share Sale Details: Tata Sons will offload 23 crore shares, while IFC will sell 3.58 crore shares.
Valuation & Timeline: Expected post-IPO valuation is $16.5 billion (~₹146,000 crore) with an early October 2025 launch.
Investor Insight: This IPO aligns with RBI’s mandate for upper-layer NBFCs to list on domestic exchanges by September 30, 2025. Investors can expect a highly subscribed offering due to Tata’s brand strength and financial credibility.
PhonePe IPO: Digital Payments in Focus
Filing Status: PhonePe has filed its Draft Red Herring Prospectus (DRHP) confidentially with SEBI.
Fundraising Target: ₹12,000 crore, with a valuation of ₹1.33 lakh crore.
Financial Performance: FY25 revenue grew 40% YoY to ₹1,998 crore, net loss narrowed to ₹1,720 crore, and cash flow from operations reached ₹1,202 crore, achieving free cash flow positive status.
Investor Insight: PhonePe’s strong growth and profitability trajectory make it an attractive candidate in the IPO market, especially in the digital payments sector.
Other Notable BFSI IPOs
Several other companies are gearing up for IPOs in the BFSI and related sectors:
LG Electronics: ₹10,000 crore IPO expected around the same period.
Groww, Meesho, Boat, WeWork India, Lenskart, Shadowfax, Physics Wallah: Collectively targeting ₹70,000 crore in upcoming IPOs.
These offerings indicate strong investor interest and signal robust capital inflow into India’s financial and technology-driven sectors.
Why Investors Should Take Note
Massive Capital Influx – The BFSI sector IPO surge signals high investor confidence.
Diverse Opportunities – Investors can participate in NBFCs, fintech, and payment platforms.
Brand Strength & Growth – Tata Capital and PhonePe bring credibility and market-leading positions.
Market Timing – Listing before key festive and economic cycles can boost investor participation.
Conclusion
The BFSI sector is experiencing a transformative IPO wave, with Tata Capital and PhonePe leading a ₹60,000 crore pipeline. Investors should track these offerings closely, as they present long-term growth opportunities and a chance to participate in India’s evolving financial ecosystem.
FAQs
Q1: What is the valuation of Tata Capital post-IPO?
Targeted valuation is $16.5 billion (~₹146,000 crore).
Q2: How much is PhonePe planning to raise?
PhonePe aims to raise ₹12,000 crore through its IPO.
Q3: When is Tata Capital’s IPO expected?
Early October 2025.
Q4: Which other companies are entering the IPO market?
LG Electronics, Groww, Meesho, Boat, WeWork India, Lenskart, Shadowfax, and Physics Wallah.
Q5: Why is the BFSI IPO surge significant?
It marks record capital inflows, demonstrates investor confidence, and provides opportunities in NBFCs, fintech, and digital payments.
Published on : 25th September
Published by : SMITA
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