India’s primary market has hit a major milestone, with the last five years (2020–2025) recording unprecedented fundraising through initial public offerings (IPOs). According to a new report from Equirus Capital, companies mobilised ₹5,39,400 crore via IPOs in this period—surpassing the ₹4,55,800 crore raised in the entire previous two decades (2000–2020).

What makes the surge striking is that this higher fundraising was achieved with 336 IPOs between 2020 and 2025, compared with 658 issues in the prior 20 years. The average IPO size in the last five years stood at ₹1,605 crore, compared with ₹692 crore between 2000 and 2020.

Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, said the rise has been driven largely by bigger issues. “One of the reasons behind this increased capital raising is that the average IPO size in the last five consecutive years has been ₹1,605 crore vs ₹692 crore between 2000–2020,” he said.

Rising OFS participation

The report highlights the growing prominence of offer for sale (OFS) components in IPOs, which has enabled promoters and private equity investors to monetise equity more effectively. In an OFS, existing shareholders (typically promoters) sell their shares directly to investors without the company issuing new shares.

“The increasing acceptability of OFS-driven IPOs has helped private equity funds secure exits and supported partial monetisation for promoters,” Shah said.

Private equity exit data reflects this shift. In the first ten months of 2025 (Jan-Oct), the share of secondary sales in PE exits rose to 16%, more than doubling from 7% in 2024. While block deals remain the preferred exit route, their share has fallen from 67% in 2024 to 56% in January–October 2025.

“This deal activity will only accelerate as nearly $165 billion (over ₹13.7 lakh crore) of PE investments approach the disinvestment stage in the coming years,” Shah added.

IPO themes that will shape 2026

Equirus expects three major structural trends to define India’s IPO markets in 2026: continued investor appetite for new-age and digital economy IPOs; large-sized public issues that strengthen market depth and liquidity; and growing participation from tier 2 and tier 3 cities.

“Issues from tier-2 and tier-3 locations now contribute more than a quarter of total IPO value—up sharply from just 4% in 2021,” Shah said.

₹1.6 lakh crore IPO pipeline expected in 2026

Equirus forecasts a robust year ahead, projecting IPO fundraising of nearly $20 billion (around ₹1,66,000 crore) in 2026. “In 2026, we see a strong pipeline of IPOs and expect fundraising via this route to touch $20 billion,” Shah said.

Equirus notes that India’s position as the world’s fastest-growing major economy—supported by manufacturing revival, Make in India, and a strong startup ecosystem—is strengthening capital market participation. Domestic institutional investors now hold a larger share of NSE-listed companies than FIIs, reflecting rising domestic flows.

According to a latest report by NSE, foreign portfolio investors (FPIs) now own just 16.9% of NSE-listed companies, their lowest share in over 15 years, as of September 2025. On the other hand, domestic mutual funds (DMFs) strengthen their hold in NSE listed companies, commanding a record 10.9% stake in NSE-listed companies, 11.4% in the Nifty 500, and 13.5% in the Nifty 50. 

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