Mutual funds pump ₹6,420cr in IPOs during September quarter
What's the story
Indian mutual funds invested ₹6,420 crore in initial public offerings (IPOs) during the July-September quarter of 2025. This marks a 13% increase from the previous quarter. The surge in investment can be attributed to consistent inflows into equity schemes through systematic investment plans and lump-sum investments. The data was sourced from PRIME Database, which also noted that mutual funds have been instrumental in anchoring IPOs with their participation as anchor investors rising by 32% to ₹5,129 crore last quarter.
Investment details
Surge in large issuances
Mutual funds' investment in IPOs through qualified institutional buyers (QIBs) has also witnessed a significant jump. The investment rose by 13% to ₹6,420 crore in the September quarter from ₹5,689 crore in the June quarter. This increase is largely due to a surge in large issuances over the past few months. Notably, the number of fresh issuances has jumped to 46 from just 15 in the previous quarter.
Market influence
Mutual funds as anchor investors
Mutual funds play a key role as anchor investors in IPOs, committing to hold 50% of their shares for 30 days and the rest for 90 days. This is unlike non-anchor qualified institutional buyers (QIBs) who don't have any mandatory lock-in period. Despite market volatility and benchmark indices not offering much return this year, investors are still betting big on mutual funds to tap into India's long-term growth story.