Mutual Funds Bet Big on Fresh IPOs in November, Data Reveals

November witnessed a surge in mutual fund (MF) investments in the equity market, with fresh issuances cornering the bulk of the investments. Swiggy, NTPC Green, and Zomato dominated the MF equity buy charts, collectively attracting a massive Rs 15,000 crore.

Zomato, in particular, raised Rs 8,500 crore through a qualified institutional placement (QIP) in November, with mutual funds playing a significant role in the anchor allotments of its initial public offering (IPO) and QIP. Leading fund houses like ICICI Prudential MF, HDFC MF, and Motilal Oswal MF were active investors in Zomato’s QIP.
Swiggy, which raised over Rs 5,000 crore via anchor investors, allocated more than half of its quota to domestic fund houses, reflecting strong interest from the mutual fund sector.

Apart from these new IPOs, major MFs also increased their holdings in large-cap stocks like Reliance Industries, Axis Bank, and ICICI Bank, according to an analysis by Nuvama Alternative & Quantitative Research.

Despite a sharp market correction in October, the equity market continued its downward momentum in the first half of November. Several large-cap stocks, especially those hit hard during the sell-off, saw substantial price cuts.

On the selling front, HDFC Bank topped the list, with MFs withdrawing an estimated Rs 11,000 crore. Power Grid Corporation was the second most sold stock, with Rs 1,700 crore pulled out by mutual funds, though no other stocks saw significant sell-offs.

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