Equity Resource Mobilization in India: A Sector-wise Analysis (Journal of National Development)

Summary

• Over the ten-year period from 2016-17 to 2025-26, India's primary market recorded a total of 2,344 equity issues that mobilized ₹10,76,010.02 crore in funds.p.7
• The annual number of equity issues increased from 118 in 2016-17 to 506 in 2025-26, reflecting a CAGR of 17.56%.p.7
• Annual funds raised through equity issues grew from ₹32,483.37 crore in 2016-17 to ₹2,34,868.39 crore in 2025-26, achieving a CAGR of 24.58%.p.7
• The second five-year period (2021-22 to 2025-26) accounted for 1,712 issues raising ₹732,869.41 crore, compared to 632 issues raising ₹343,140.62 crore in the first five years.p.14

Key insights

1. In 2023, SEBI reduced public issue listing timelines from T+6 to T+3 days to streamline the IPO process.p.2
2. India's total equity issues expanded at a compound annual growth rate of 17.56% over the decade studied.p.7
3. The Electrical Equipment/Production sector posted the highest growth in mobilized amount with a CAGR of 93.16% between 2016-17 and 2025-26.p.11
4. Banking and Financial Institutions experienced a negative CAGR of -13.84% in equity funds mobilized over the decade.p.11
5. The top five sectors by number of issues—Miscellaneous, Electrical Equipment/Production, Healthcare, Information Technology, and Cement/Construction—represented 62.07% of all equity issues.p.14
6. Equity issuance frequency increased 2.71 times between the first and second half of the decade, while average transaction size declined.p.14