An Empirical Study of Banking and Non-Banking Financial Institutions through Its Initial Public Offering (IPO) and Its Performance in New Era

Abstract

The financial landscape in India has witnessed a significant transformation in recent years, with both Banking and Non-Banking Financial Institutions (NBFIs) increasingly leveraging the capital market for expansion through Initial Public Offerings (IPOs). This empirical study critically examines the pre- and post-IPO performance of selected banking and NBFI entities in India during the past decade, focusing on their financial health, investor response, and long-term sustainability in the dynamic market environment. Using quantitative tools and secondary data from SEBI, stock exchanges, and annual reports, the study evaluates parameters such as stock price volatility, return on equity (ROE), net profit margins, and market capitalization trends. The research aims to compare the strategic approach of banking and non-banking firms toward public offerings and analyze how market sentiment, regulatory frameworks, and corporate governance influence IPO outcomes. The findings suggest that while IPOs provide a robust platform for capital mobilization, post-listing performance varies significantly between banking and non-banking institutions, driven by differences in operational models, risk exposure, and investor confidence. The study also sheds light on the challenges faced by these financial institutions in sustaining market performance amidst technological disruptions, fintech competition, and evolving customer expectations in the new era. This research contributes to the existing literature by providing a sectoral comparison and offering insights for policymakers, investors, and institutional stakeholders aiming to understand the nuanced dynamics of IPO performance in India's financial services sector.