Datanomics: Investors see losses in a third of NBFC IPOs since 2018

On October 24 (Friday), the share closed on the Bombay Stock Exchange (BSE) below its offer price by 0.6 per cent

\The initial public offering (IPO) of Tata Capital listed on October 13 with a marginal gain of 1.2 per cent over its offer price. By Friday (October 24), the stock had slipped 0.6 per cent below its issue price on the Bombay Stock Exchange (BSE). Since September 2018, when the non-banking finance company (NBFC) crisis began following the default by Infrastructure Leasing & Financial Services (IL&FS), 22 IPOs from the segment have hit the market. Of these, eight were trading below their issue prices on the BSE as of Friday.  

2025 so far the worst year

 

Apart from Tata Capital, the two other NBFC IPOs in 2025 — HDB Financial Services Ltd and Laxmi India Finance Ltd — also closed below their issue prices on Friday, down 0.8 per cent and 4.4 per cent, respectively. No other year since September 2018 has seen such weak listings, not even the crisis year itself, when Aavas Financiers Ltd tapped the market. 

 

The leaderboard

 

Investors in two of the five best-performing NBFC IPOs have seen gains of over 100 per cent as of Friday, while the remaining three have delivered returns of more than 300 per cent over their issue prices. 

 

The laggards

 

In contrast, investors in four of the five worst-performing IPOs have seen losses between 40 and 71 per cent as on Friday. Only one saw losses in single digits.