3 weeks ago
Demat account additions hit 6-month high amid IPO frenzy
A demat account is a digital locker where people safely keep their shares of companies.
In India, lots of people opened new demat accounts in July.
The number reached 2.89 million, which was the highest in six months.
The main reason was a busy IPO season, where companies sell their shares to the public for the first time.
To buy shares in an IPO, you usually need a demat account.
Stock prices also went up, and foreign investors started buying Indian shares again.
India's total demat accounts have grown from 49 million in December 2020 to 234 million in July 2026.
Big companies like Jio Platforms and the National Stock Exchange plan to launch their own share sales soon.
If those go well, even more people may start investing.
New demat account additions in India reached 2.89 million in July, the highest since January 2026.
The surge was driven by a vibrant IPO market, with 12 IPOs raising approximately ₹28,649 crore in July 2026.
Positive returns in largecap and midcap stocks, improved foreign portfolio investor (FPI) flows, and in-line corporate earnings also attracted new investors.
FPIs turned net buyers of shares worth ₹20,200 crore in July after being net sellers for the preceding four months.
Total demat accounts in India grew nearly fivefold from 49.07 million in December 2020 to 234.43 million in July 2026.
- Who
- Indian retail investors opening new demat accounts, with commentary from market experts Prakarsh Gagdani of Soaring Peaks Capital and Kranthi Bathini of WealthMills.
- What
- New demat account additions hit a six-month high of 2.89 million in July, driven by the IPO market and a strong equity rally.
- Where
- India
- When
- July 2026
- Why
- A vibrant IPO market (12 IPOs raising ₹28,649 crore), positive largecap and midcap returns, improved FPI flows, and in-line corporate earnings encouraged more investors to enter the capital markets.
Key facts
- New demat accounts added (July 2026)
- 2.89 million
- Monthly average additions
- 2.6 million
- IPOs in July 2026
- 12 issues raising ₹28,649 crore
- Total demat accounts (July 2026)
- 234.43 million
- Total demat accounts (December 2020)
- 49.07 million
- FPI net share purchases (July 2026)
- ₹20,200 crore
- July market performance
- Nifty +2.2%, Midcap 100 +1.8%, Smallcap 100 +2.53%
- Upcoming marquee IPOs
- Jio Platforms and National Stock Exchange (NSE)
Quotes
Prakarsh Gagdani
Founder of Soaring Peaks Capital
“"The resurgence in the IPO market has been one of the biggest drivers of the rise in demat account openings in July."”
rediff.com
“"That performance has attracted more investors to equities and supported the continued increase in demat accounts."”
rediff.com
Sources
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