Whalesbook
Market Milestones
India's capital markets are experiencing rapid expansion, playing a crucial role in wealth creation and economic growth, according to National Stock Exchange (NSE) Managing Director and CEO Ashishkumar Chauhan. He noted on Thursday that the country is increasingly producing companies ready for listing, moving beyond a startup-centric ecosystem.
Speaking at the Association of Investment Bankers of India’s 14th Annual Convention, Chauhan characterized India's markets as among the world's most vibrant. This dynamism is supported by rising investor engagement, strong capital mobilization, and a well-developed primary market infrastructure. The total market capitalization of listed entities now stands at approximately ₹466 lakh crore, or $5.2 trillion, positioning India as the fourth-largest equity market worldwide. The market capitalization-to-GDP ratio has climbed to about 130.5%, signalling that financial maturity is outpacing physical output growth.
Investor Boom
Equity fund mobilization has outpaced economic growth, increasing from roughly ₹2.4 lakh crore in fiscal year 2022 to nearly ₹4.2 lakh crore in FY25, reflecting a compound annual growth rate (CAGR) of about 21%. More than 12.5 crore unique investors are now participating in Indian equities through nearly 25 crore client accounts on NSE alone, covering over 99.8% of the country's districts. Since April 2020, more than a quarter of Indian households have entered the equity market, contributing to an estimated ₹53 lakh crore in cumulative household wealth.
NSE has facilitated fund mobilization of about ₹76 lakh crore across equity and debt markets since FY22. In 2025, market-based fundraising reached approximately ₹20 lakh crore, comprising ₹4.2 lakh crore in equities and ₹15 lakh crore in bonds and debt instruments. This surpasses the incremental bank credit extended to industry and services during the same year.
IPO Engine
India solidified its position as a premier IPO destination in 2025. The NSE hosted 220 IPOs, raising ₹1.78 lakh crore. This included 103 mainboard issues that garnered ₹1.72 lakh crore and 117 SME IPOs which raised about ₹5,784 crore. India led global IPO markets in terms of the number of listings, even as other international markets showed subdued activity.
Public markets are becoming a critical funding avenue for new-age businesses. In 2025, startups raised approximately ₹41,000 crore through mainboard IPOs on NSE, a notable increase from the roughly ₹29,000 crore raised via debt in 2024. This trend highlights growing confidence in transparent, market-driven capital raising mechanisms.
SME Maturation
The SME segment also demonstrated increased maturity, with average issue sizes rising to about ₹49 crore. Several SME IPOs successfully crossed the ₹100-crore mark. Enhanced eligibility criteria, including the introduction of a free cash flow to equity metric, have improved listing quality and reduced investor risk. Data from NSE indicates that after implementing the free cash flow screening in September 2024, the proportion of SME stocks trading over 60% below their issue price dropped significantly from 10.6% to just 2%. Institutional investor participation has also grown, with qualified institutional buyers allocated nearly 39% of recent SME issue sizes.
Chauhan stressed that while exchanges set the frameworks, the responsibility for quality execution rests with merchant bankers and intermediaries. He called for sustained capacity building, rigorous due diligence, and elevated governance standards to maintain investor confidence as India's capital markets continue to deepen.