How Long Before an Unlisted Company Usually Goes for IPO?

In India, the Inc42 tracker that lists new-age tech companies estimates the median time period taken by a startup to be listed at 11 years. This only applies to tech companies. Conventional manufacturers and industries such as the producers of electrical equipment generally remain privately owned for a long time before listing.

The same is happening in America too. The IPO data compiled by Jay Ritter over the years suggests that the average age of an organization when it went public has increased from 9.5 years between 1980 and 2019 to 10 in 2023, and 14 in 2024. The median age of a startup at the time of listing is estimated to be 13.5 years in 2024 according to University of Florida research.

It can therefore safely be said that the time period ranges between 10 to 14 years for growth organizations, with many exceptions.

The Legal Minimum in India (The "Earliest You Can Go")

Regulation acts as a floor but not a target. In accordance with my general understanding of SEBI and exchange regulations, please do confirm the rules prevailing now:

SME Exchanges (NSE Emerge/BSE SME)

Require at least:

• 3 years operating track record

• Positive net worth

• Operating profit (EBITDA) of at least ₹1 crore in 2 out of 3 previous years. This is the reason why many small-scale manufacturing concerns first come to these exchanges.

Main Exchange (BSE/NSE)

As per the regulation prescribed by SEBI, mainboard listing requires more stringent requirements, which includes:

• Three-year track record

• Average Operating Profit of at least ₹15 crores during the preceding 3 years

• Net Tangible Assets of at least least ₹3 crores in each of the preceding 3 years

• Net Worth of at least ₹1 crore in each of the preceding 3 years

• An alternative QIB route exists for loss-making companies. Under this route, the IPO must be conducted through a book-building process where at least 75% must be allocated to Qualified Institutional Buyers (QIBs).

Moreover, the company should be a public limited company before coming to these exchanges under any route.

Why the Wait Varies So Much

1. Company stage: Companies list only once they have established revenue, profits or growth, and audited accounts. An immature company is simply not ready.

2. Capital requirements: A manufacturer requiring funds for plant construction, debt redemption, or working capital, will list sooner than the one adequately funded by their sponsors.

3. Availability of private capital: Availability of private equity and venture capital makes it easier for firms to remain private for longer periods. One factor behind the increasing ages of IPOs in the USA.

4. Exits for investors: Investors in an investment-funded firm usually seek to exit within a set period for the fund, typically around 7 to 10 years, prompting the IPO.

5. Market sentiment: Companies frequently seek an IPO when the market sentiment is good and valuations are high and wait when sentiment is poor. The Indian IPO boom in 2025 & 2026 hastened many listings.

6. Preparation: The company requires good accounts, profitable track record, corporate governance (independent directors, audit committee), and a merchant banker and lawyers. Preparation of an IPO generally takes between 6 to 18 months.

Typical Stages Before an IPO

For Small Manufacturers on the SME Platform

However, small-scale industrial firms such as the producers of CT/PT within our sample of peers take a different approach. They may operate as privately-held corporations for 10 or 15 years or even longer, establishing themselves in terms of performance and utility approvals and then going public on an SME stock exchange. This can be seen from the case of Akanksha Power, which started its operations in 2008 and then expanded into manufacturing.

Bottom Line

Think of the timeline as a range, not a rule:

• Fastest realistic timeline: about 3 to 5 years, for fast-growing companies that meet the track-record rules.

• Typical: about 8 to 15 years.

• Also common: 20 years or more for family-run industrial firms.

The best indicator is not the age of the business but rather its preparedness, which means having a profitable business, good governance, an intended purpose for raising funds, and a receptive market for the IPO.