- By Aditya Pratap Singh
- Thu, 16 Apr 2026 06:43 PM (IST)
- Source:JND
India’s equity market has witnessed a remarkable and sustained surge in retail investor participation over the past decade. The overall tally of demat accounts has skyrocketed, reaching 21.6 crore by the end of December 2025 from just 2.71 crore at the end of December 2016.
This substantial growth of nearly 18.9 crore accounts underscores the public’s growing interest in the capital market. Moreover, this momentum extends beyond the secondary stock market as the unlisted and pre-IPO investment market is also seeing heightened activity, with both retail and institutional investors keenly pursuing opportunities before companies go public.
According to market watchers, brand awareness is one of the key reasons behind this trend, as the availability of well-known companies in the unlisted space has increased over the past few years.
Well-known firms from sectors such as financial services, fintech, and consumer businesses are drawing wider attention to this segment as investors rush to invest in these companies before their listings.
Several companies that were earlier traded as unlisted shares have since moved towards listing on exchanges like the National Stock Exchange of India and the Bombay Stock Exchange, further reinforcing investor interest.
According to Krishna Patwari, Founder and Managing Director of Wealth Wisdom India Pvt. Ltd., the pre-IPO market is gradually becoming more organised.
“Over the next few years, the space is likely to see improvements in transparency, price discovery, and deal flow, as more companies choose to remain private for longer periods before going public,” Patwari noted.
The growing presence of digital platforms has also played a role in expanding access to unlisted shares. These platforms are introducing features such as online transactions, indicative pricing visibility, and portfolio tracking, which were earlier limited or fragmented.
“As a result, participation from retail investors has increased, although high-net-worth individuals continue to account for a larger share of capital in the segment,” Patwari highlighted.
Investors' Eye Finance, Tech Sectors
Investor interest is currently concentrated in sectors such as financial services, technology-led businesses, and consumer-focused companies.
Market observers highlight that both retail and institutional investors are becoming more selective, with a focus on companies that show long-term growth potential rather than short-term price movements.
Global Geopolitics Have Limited Impact on the Unlisted Market
Global uncertainties, including geopolitical tensions, have had a relatively limited impact on the unlisted market compared to listed equities.
Investments in this sector are generally made without leverage and with a long-term perspective, making this segment less sensitive to short-term volatility. Investors typically prioritise companies' fundamentals and their IPO prospects over immediate market fluctuations.
According to the founder of Wealth Wisdom India, during periods of uncertainty, investor behaviour appears to have evolved rather than deteriorated.
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Market activity continues, but with a more cautious approach. Investors favour companies with strong fundamentals and clearly visible growth, resulting in more selective participation.
Overall, the private equity market is gradually evolving within the Indian investment ecosystem. Thanks to increased awareness and greater accessibility, pre-IPO investing is becoming an increasingly popular option for those wishing to participate in companies' equity before they go public.