Mutual funds invest ₹6,420cr in IPOs during Q3 2024
Indian mutual funds invested ₹6,420 crore in IPOs during July-September 2024—a 13% rise from the previous quarter.
With 46 IPOs launched in Q3 2024, the market is buzzing with activity and investor interest.
MFs's role in IPOs
Mutual funds act as anchor investors in IPOs, agreeing to hold half their shares for 30 days and the rest for 90 days—unlike other big investors who face no lock-in.
Even though this year hasn't seen huge equity returns, investors are still turning to mutual funds to get a piece of promising new companies riding India's growth wave.
India's booming IPO scene
India is now the world's fourth-largest IPO market, with $14.2 billion raised from 74 companies so far in late-2024.
While recent IPOs are mostly fairly priced or at a premium—so quick profits may be limited—they're drawing attention for strong fundamentals and fresh business ideas.
The steady flow of new listings highlights how vital mutual funds are for keeping the market lively when regular stocks aren't delivering big gains.