Mutual Funds Invest ₹2,688 Crore Across Five June IPOs

Mutual funds displayed selective enthusiasm in June, injecting ₹2,688 crore as anchor investments into five of the eight initial public offerings (IPOs) launched that month. Meanwhile, three IPOs—Globe Civil Projects, Arisinfra Solutions, and Indogulf Cropsciences—saw no participation from mutual funds, neither in anchor allocations nor in public subscriptions.

Overall, the eight IPOs collectively raised over ₹17,688 crore, with notable backing from mutual funds for Oswal Pumps, Kalpataru Projects, Ellenbarrie Industrial Gases, HDB Financial Services, and Sambhav Steel Tubes.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Key IPO Investments

• Ellenbarrie Industrial Gases: Mutual funds contributed ₹428 crore of the total ₹852 crore raised. Motilal Oswal Securities led with ₹273 crore, followed by Axis, HDFC, and Tata Mutual Funds.
• HDB Financial Services: The largest beneficiary, attracting ₹1,400 crore from 21 mutual funds in its ₹12,500 crore IPO. ICICI Prudential led with over ₹200 crore, trailed closely by SBI and Kotak Mahindra. DSP, Axis, and Aditya Birla also participated, each contributing around ₹100 crore.
• Kalpataru Projects: Raised ₹377 crore from mutual funds within a ₹1,590 crore issue. SBI Mutual Fund was the largest investor at ₹295 crore, with Tarus and ICICI Prudential also backing the IPO.

Mutual Funds Skip Three IPOs

Mutual funds notably avoided Globe Civil Projects, Arisinfra Solutions, and Indogulf Cropsciences entirely, choosing not to participate in either anchor or public bids.

Market Perspective

June marked a strong month for mutual fund activity in IPOs, aligned with broader equity inflows. Fresh subscriptions through systematic investment plans (SIPs) and confidence in benchmark indices spurred renewed. Equity mutual fund net inflows reached ₹23,587 crore—a 24% increase from May’s ₹19,013 crore. This resurgence followed five consecutive months of declining secondary-market investments.

Mutual funds also actively participated in high-value block deals and other primary market opportunities. In June, they poured around ₹39,000 crore into equities—a figure closely matching the ₹41,000 crore exchanged via block deals.

Why Anchor IPO Participation Matters?

Anchor investments, typically held for 90–120 days, signify institutional confidence and can influence retail investor sentiment. In recent years, mutual funds have increasingly taken the lead in anchor allocations, outpacing foreign institutional investors (FPIs) in some years.

Such investments enable mutual funds to secure substantial IPO allocations through thorough research and risk management, thereby supporting both portfolio strength and investor trust.

Conclusion

In June, mutual funds contributed ₹2,688 crore as anchor investors across five key IPOs, while steering clear of three others. This selective approach reflects a strategic allocation amid rising equity inflows and a stabilising market. As investor confidence rebounds in both primary and secondary markets, mutual funds remain pivotal in shaping anchor investment trends in upcoming IPOs.