A Big Shift in IPO Purpose
In the last twenty years, the reason why companies bring IPOs has changed a lot. Earlier, most companies came to the market to raise money for growing their business. But now, the main goal looks very different. Recent data clearly shows this change and helps us understand what is really happening with IPO money. (see the image below)

IPO Money Between 2005 and 2015
From 2005 to 2015, companies raised around 1.6 lakh crore rupees through IPOs. During this time, about 77 percent of the money was used for business expansion. This means the funds went into factories, projects, and growth plans. Only 23 percent of the money was used for offer for sale, where promoters or early investors sold their shares.

What Offer for Sale Means
Offer for sale means the money does not go into the company. Instead, it goes to promoters or early investors who sell their shares in the IPO. So even though the public invests money, that money does not help the business grow. It only changes hands from buyers to sellers.

IPO Trend From 2015 to 2025
From 2015 to 2025, the total IPO amount jumped to about 6.5 lakh crore rupees. But here the picture fully reversed. Around 71 percent of the IPO money was used for offer for sale. Only 29 percent of the money went into actual business growth. This shows a clear change in how IPO funds are being used.

Where the Public Money Is Going
This data tells us that a large part of public money is not entering companies anymore. Instead, it is going out to promoters and investors selling their shares. The market is seeing a big flow of money, but very little of it is helping companies grow their business.

What This Change Really Means
The IPO market is still very active, but the role of IPOs has changed. Today, IPOs are more about ownership change than business expansion. This is an important point for investors to understand before putting money into new listings.