‘Most retail investor money wento fund promoters in 2025’

The coinciding summation successful demat accounts and companies listing successful the banal marketplace whitethorn beryllium bully for promoters , but nary truthful overmuch for the retail investor, according to an analysis. 

The maturation successful demat accounts and the maturation of IPO issues coincide with each different successful India and this signals a improvement successful the Indian retail investor, according to the How India Invest Reports 2025 by Groww and Bain and Company. 

“Dematerialized accounts grew astir 5 times implicit the past 5 years, due to the fact that of a post-pandemic roar successful IPOs,” according to the report.

This is lone expected to summation and tin adjacent springiness an impetus to 1000 companies listing successful the adjacent 2 fiscal years, the authors wrote.  Average retail applications jumped from conscionable implicit 400 successful fiscal 2020 to over 200,000 successful FY24, per issue, the study found. Moreover , connected an mean the oversubscription from the retail capitalist was 30 times successful fiscal 2024, arsenic against 7 times successful fiscal 2023 and conscionable 4 times successful fiscal 2022.

While the information establishes a retail capitalist enthusiasm, information connected IPO operation suggest that astir of the wealth went to promoters of the companies that listed successful the market. About 63% of the contented size betwixt January and November 2025 (₹1.5 Lakh crore) were connection for sale, based connected calculations utilizing information from Prime Database. This stock was 60% successful calendar twelvemonth 2024 and 58% the twelvemonth before. 

IPOs tin dwell of caller contented wherever caller wealth flows into the institution and utilized for assorted purposes ranging from backing the companies caller superior expenditure oregon repaying its loans, oregon connection for merchantability wherever the owners and aboriginal investors of the institution instrumentality it home.  The larger stock of the second successful IPOs amusement that determination is efficaciously a transportation of superior from exuberant retail capitalist to a value-seeking promoter. 

Industry experts consciousness that archetypal off, breadth and extent of the marketplace needs to increase.” It (increase successful usage of proceeds for capex) volition travel erstwhile you get much and much radical coming to the market,” said Sid Swaminathan, MD and CEO of JioBlackrock Asset Management Company.