Investors Face Losses in One-Third of NBFC IPOs Since 2018: Datanomics

Investors in non-banking finance company (NBFC) IPOs have faced uneven outcomes in recent years. Data reveals that almost one-third of all NBFC IPOs listed since 2018 are currently trading below their issue prices. The latest entrant, Tata Capital, reflects this trend after its shares dipped below the offer price within days of debut.

NBFC IPO Performance Since 2018

Since September 2018, when the NBFC sector was hit by the Infrastructure Leasing & Financial Services (IL&FS) default crisis, 22 companies from the segment have gone public. Out of these, 8 are now trading below their issue prices on the Bombay Stock Exchange (BSE). This indicates that 36% of NBFC listings have yielded negative returns for investors over time.

The IPO of Tata Capital, which listed on October 13, 2025, opened with a marginal 1.2% premium but slipped 0.6% below its offer price by October 24, 2025. This performance highlights subdued post-listing momentum in the financial services sector amid mixed investor sentiment.

Market Context and Investor Sentiment

While select NBFCs have delivered strong post-listing gains due to robust financial performance and consistent loan growth, others have underperformed because of liquidity challenges, rising borrowing costs, and tightening regulatory norms. The IL&FS default in 2018 led to a liquidity crunch across the sector, influencing valuations and investor confidence in subsequent public issues.

Read More:RBI Proposes Banks May Finance Domestic and Foreign Acquisitions!

Conclusion

Data from 2018 onwards shows that 1 in 3 NBFC IPOs have delivered negative returns, reflecting the sector’s cyclical nature and investor caution. Tata Capital’s recent listing performance reinforces this pattern, highlighting the need for careful assessment of financials and business sustainability before investing in sectoral offerings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.