Five of the top 10 Indian entities to have listed on the bourses are from the
BFSI sector, according to a report by Praxis Global Alliance titled “India Investments Pulse 2020”. Contextually, 43 Indian companies raised $3.6B in the public markets in 2020, as compared to $1.8B in the previous year. Of these, five BFSI entities including
SBI Card,
CAMS, UTI Mutual Fund, Angel Broking and Equitas Small Finance Bank ranked amongst the top 10 Indian IPOs of the year.
SBI Card and Payment Services, which was amongst the first IPOs to be listed days before India went into a stringent lockdown to curb the spread of the COVID-19 pandemic, raised $1381M from its offer. Registrar and transfer agent entity Computer Age Management Services (CAMS), which listed in October 2020, raised $299M through its offer.
During October 2020, two more BFSI entities, namely UTI Mutual Fund and Angel Broking raised $288M and $80M, respectively. Small Finance Bank Equitas, on the other hand, having listed in November, raised $69M from its public issue.
BFSI exits
Two BFSI entities, namely SBI Card and AU Small Finance Bank, also featured amongst the Top 10 exits of 2020. The Carlyle Fund through a public market sale worth $951M, partially exited its investment in SBI Card. AU Small Finance Bank also saw complete exits from Warburg Pincus, worth $173M through a public market sale, and in a separate transaction, between IFC and ChrysCapital, which exited wholly from the lender at $124M.
Private Equity entries
The BFSI sector as a whole raised approximately $3209M in terms of funds from Venture Capital and Private Entity funds, ranking fifth after the Telecom, Retail, Consumer apps and Ecommerce platforms. Amongst the Top 10 deals featured for the BFSI sector include NBFC Edelweiss which through a Late stage fund by SSG Capital and Farallon Capital raised $401M.
NBFC PNB Housing Finance also raised $234M through funding from The Carlyle Group, whilst lender RBL Bank attracted $209M through funding from Baring Private Equity Asia, ICICI Prudential Life Insurance, Gaja Capital and CDC Group. NBFC’s Indostar, DMI Finance and Homefirst Finance also raised $362M, $123M and $95M, respectively.