The IPO buzz on Dalal Street is not just attracting retail investors but institutions as nicely. Gung-ho on public problems in the month of July, the mutual fund sector invested Rs 5,900 crore in IPOs, information sourced by Edelweiss Alternative Research showed. Most of these funds have been channelised towards the considerably-awaited IPO of meals-tech unicorn Zomato. Equity inflows in the month of July came in at Rs 22,580 crore, up from Rs 5,988 crore in the month of June. “With such strong inflows into equity schemes, funds deployed Rs 19,700 crore in Secondary Markets; highest for 2021,” Edelweiss stated in the report.
Apart from Zomato, mutual funds invested revenue in GR Infraprojects, Tatva Chintan Pharma, and Rolex rings through the month of July. Flows into Zomato’s IPO have been recorded at Rs 4,450 crore, even though GR Infraprojects IPO received Rs 1,083 crore from fund homes. Tatva Chintan Pharma and Rolex Rings’ IPOs received Rs 210 crore and Rs 142 crore, respectively.
Who purchased Zomato?
-SBI Mutual Fund – Bought shares worth Rs 566 crore
-Motilal Oswal Mutual Fund – Rs 499 crore
-Mirae MF – Rs 481 crore
-Axis Mutual Fund – Rs 467 crore
-Kotak Mutual Fund – Rs 258 crore
-HDFC Mutual Fund – Rs 244 crore
-Aditya Birla Sun Life – Rs 227 crore
-ICICI Pru MF – Rs 184 crore
-Franklin Templeton – Rs 184 crore
-IDFC MF – Rs 84 crore
-Edelweiss MF – Rs 72 crore
Fund homes invest Rs 1,083 cr in GR Infraprojects
The newly listed GR Infraprojects was amongst the most purchased mid-cap stocks through the month of July. Mutual Fund homes purchased a total of 63 lakh shares of GR Infraprojects, valued at Rs 1,083 crore. SBI Mutual Fund purchased shares of GR Infra worth Rs 361 crore, whereas ICICI Prudential MF purchased shares worth Rs 333 crore — the two highest purchases made by any mutual fund property of GR Infraprojects’ shares.
According to Edelweiss, other important additions made by the mutual fund sector contain HDFC Bank, ICICI Bank, Bajaj Finance, NMDC, ITC, and Axis Bank. Meanwhile, Infosys, Kotak Mahindra Bank, and Grasim Industries have been the leading stocks that have been sold by fund homes. The enormous inflows seen by the Mutual Fund sector in July have been also due to NFOs as funds collected Rs 13,700 crore, the report added. “Interestingly, the Systematic Investment Plans (SIPs), flows continued to rise and came in at a record higher at Rs 9,609 crore compared to Rs 9,155 crore in June 2021.