Market data reveals unprecedented acceleration as five-year fundraising spree nearly matches three decades of capital formation
Between 2020 and 2025, companies raised Rs 7.41 lakh crore through IPOs and follow-on offerings.. To put that in perspective: it took 31 years—from 1990 to 2020—to raise Rs 6.40 lakh crore. That is three decades of capital formation replicated in five years.
The latest IPO Market Update for January 2026 from Axis Capital notes that more than half of all the money raised in India’s equity markets since 1989 came in just the last five years. The annual fundraising velocity increased seven times from Rs 20,629 crore per year to Rs 1.48 lakh crore per year.
Bigger Cheques
Here’s the twist: while the money exploded, the number of companies going public actually dropped. Only 107 companies per year hit the markets during 2020-2025, down from 207 annually in the earlier period.
So where’s all the money going? Into much bigger deals. The average IPO size jumped to Rs 1,385 crore, nearly 14 times the Rs 100 crore average from before. India’s IPO market has gone from corner shop to flagship store.
What Changed Everything?
Multiple things came together at once, creating what market veterans will remember as a once-in-a-generation moment.
The retail revolution arrived. Millions of Indians stuck at home during the pandemic opened demat accounts and discovered investing. The traditionally elite domain of stock markets suddenly became accessible to anyone with a smartphone. And they came hungry.
Unicorns needed an exit. India spent the 2010s building startups. By 2020, they’d grown up and needed to go public. Zomato, Nykaa, Paytm, PolicyBazaar—these weren’t your grandfather’s IPOs. They were billion-dollar businesses with millions of customers, and everyone wanted in.
Money was everywhere. Central banks worldwide opened the taps during Covid. Interest rates hit rock bottom. Suddenly, parking money in fixed deposits seemed foolish when tech companies were promising the moon. Capital didn’t just flow—it flooded.
SEBI cleared the path. Regulatory reforms made listing faster and easier. The innovators growth platform gave smaller companies options. The machinery got smoother with revolution in payments such as UPI and real-fast allotment times, and quicker allotment and refund times.
The Wealth Question
For anyone trying to build wealth, this is a dilemma wrapped in an opportunity.
Yes, 535 companies went public in five years. That’s a massive hunting ground for potential multi-baggers. But here’s the uncomfortable truth: IPO booms usually happen when everyone’s already made money and valuations are stretched.
And here’s another reality check: only 64 of the 94 main board IPOs listed till December 2026 —about 68%—were trading above their issue price by year-end. The rest? Underwater.
That Rs 1,385 crore average issue size? It means big, established companies dominating the pipeline—often at premium prices. The days of discovering small, undervalued gems going public have given way to household names cashing in on peak sentiment.
And that 68% success rate for recent IPOs? It’s a reminder that not every listing is a winner. Some of these companies will create generational wealth. Others will leave investors nursing losses for years. The market doesn’t care about your hopes.
The Pipeline
Nevertheless, its a big time for the IPO investor.
“The IPO market is well-positioned to gain further momentum in the fourth quarter of FY2026 with a robust pipeline,” the Axis Capital report notes. And they’re not exaggerating.
Right now, 101 companies have filed draft red herring prospectuses (DRHPs) with SEBI and are awaiting clearance. Another 92 have already received SEBI’s green light and are waiting to hit the market. Add 14 more that filed confidential DRHPs since March 2025.
Do the math: 86 SEBI-approved companies ready to launch, plus 107 more in the approval queue. That’s 193 companies in various stages of going public.
And the names in that pipeline? They’re not small fry. Shiprocket. Acevector (the company behind Snapdeal). Imagine Marketing (boAt). Zepto. Oyo. Shadowfax Technologies. Manipal Payment and Identity Solutions, Fractal, and more.
The next leg
The shift is structural, not cyclical. When five years outpace three decades, you’re not looking at a market cycle—you’re witnessing a fundamental transformation in how Indian companies access capital.
Size matters now. The 14x jump in average issue size signals that India’s IPO market has matured. Large, established businesses now dominate. The era of small companies testing public waters is largely over.
Quality is inconsistent. With only 68% of recent IPOs trading above issue price, the market is separating wheat from chaff faster than before. Brand names don’t guarantee returns anymore.
The pipeline is unprecedented. Nearly 200 companies in the queue means the supply of new paper will remain heavy through 2026. That’s both opportunity and risk— and more choices.
Retail is here to stay. The democratisation of investing isn’t reversing. Millions of new investors have discovered equity markets, and their participation is reshaping primary market dynamics permanently.
What This Means Going Forward
But here’s what wealth builders need to remember: more isn’t always better. In a market flooded with options, discipline becomes your edge. The companies going public today are larger, more mature, and often more expensively priced than their predecessors. Hence, there is no easy money.
Yes the velocity of fund raising has increased seven-times. But 32% of recent IPOs trading below issue price tells you everything about risk.
The IPO Report Card
- Total raised (1990-2020): Rs 6.40 lakh crore across 6,406 companies
- Total raised (2020-2025): Rs 7.41 lakh crore across 535 companies
- Annual velocity increase: 7x (from Rs 20,629 crore to Rs 1.48 lakh crore per year)
- Average issue size increase: 14x (from Rs 100 crore to Rs 1,385 crore)
- Share of 35-year total: 53.68% in just the last 5 years
- Companies in IPO pipeline: 193 (86 SEBI-approved, 107 awaiting approval)
- Recent IPO success rate: 68% trading above issue price
