Mutual fund houses bet on IPOs; invest Rs 5,900 cr in Zomato, GR Infra, other public issues in July

Apart from Zomato, mutual funds invested money in GR Infraprojects, Tatva Chintan Pharma, and Rolex rings during the month of July.
(Image: REUTERS)

The IPO buzz on Dalal Street is not just attracting retail investors but institutions as well. Gung-ho on public issues in the month of July, the mutual fund industry invested Rs 5,900 crore in IPOs, data sourced by Edelweiss Alternative Research showed. Most of these funds were channelised towards the much-awaited IPO of food-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 said in the report.

Related articles

ELSS mutual fund inflows drop over 48% in July: Should you invest?

August 10, 2022

What should investors in China and Taiwan funds do now?

August 9, 2022

Apart from Zomato, mutual funds invested money in GR Infraprojects, Tatva Chintan Pharma, and Rolex rings during the month of July. Flows into Zomato’s IPO were recorded at Rs 4,450 crore, while GR Infraprojects IPO received Rs 1,083 crore from fund houses. Tatva Chintan Pharma and Rolex Rings’ IPOs received Rs 210 crore and Rs 142 crore, respectively. 

Who bought 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 houses invest Rs 1,083 cr in GR Infraprojects 

The newly listed GR Infraprojects was among the most bought mid-cap stocks during the month of July. Mutual Fund houses bought a total of 63 lakh shares of GR Infraprojects, valued at Rs 1,083 crore. SBI Mutual Fund bought shares of GR Infra worth Rs 361 crore, whereas ICICI Prudential MF bought shares worth Rs 333 crore — the two highest purchases made by any mutual fund house of GR Infraprojects’ shares.  

According to Edelweiss, other major additions made by the mutual fund industry include HDFC Bank, ICICI Bank, Bajaj Finance, NMDC, ITC, and Axis Bank. Meanwhile, Infosys, Kotak Mahindra Bank, and Grasim Industries were the top stocks that were sold by fund houses. The massive inflows seen by the Mutual Fund industry in July were 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 high at Rs 9,609 crore compared to Rs 9,155 crore in June 2021.