Mutual funds investment in initial public offerings of corporates have been increasing steadily on the back of consistent inflows in equity schemes through systematic investment plan and lumpsum investments.
MFs investment in IPOs through qualified institutional buyers has jumped 13 per cent in the September quarter to ₹6,420 crore against ₹5,689 crore logged in the June quarter on the back of a sharp increase in large issuances in the recent months, according to the data sourced from PRIME Database.
In fact, MFs have been playing a key role in anchoring IPOs with their participation as anchor investor has been rising 32 per cent to ₹5,129 crore last quarter against ₹3,871 crore in June quarter.
The ex-anchor participation in IPOs of MFs has fallen 29 per cent to ₹1,290 crore against ₹1