India’s primary markets had seen a lot of action in October, with many high profile names coming out with their IPOs amid exuberance in the markets. Top mutual funds have lapped up five IPOs which debuted on the bourses last month.
India’s primary markets had seen a lot of action in October, with many high profile names coming out with their IPOs amid exuberance in the markets. Top mutual funds have taken high exposure to five IPOs which made their debut on the bourses last month. Interestingly, India Energy Exchange stood out as the most bought stock by mutual funds last month. Top mutual funds including Aditya Birla Sun Life AMC, Axis Mutual Fund, DSP Blackrock, ICICI, Sundaram and IDBI among others collectively invested a staggering Rs 315.48 crore into the shares of the company in October alone, data compiled by IDBI Capital showed. Interestingly, the company had aimed to raise about Rs 1,000 crore. At the end of the bidding process, QIB portion had been subscribed 2.56 times. While the collective holdings stood at Rs 315.48 crore, it’s not immediately clear if the funds had subscribed to the shares in the IPO or increased their positions later.
Mutual funds also lapped up the shares of Godrej Agrovet Ltd, with Rs 270 crore invested by them in the month of October alone. Interestingly, Godrej Agrovet IPO got oversubscribed 95 times, post three days of heavy bidding, backed by strong demand from institutions, as the QIB portion was oversubscribed by 151 times! Top four mutual funds by AUM have invested heavily into the shares. Notably, Axis Mutual Fund alone pumped in a staggering Rs 96 crore into the shares, data from IDBI Capital’s report showed.
Another, centurion IPO MAS Financial Services Ltd which was oversubscribed by 129 times last month, had seen heavy demand from mutual funds in October. More than ten mutual funds including prominent names like Reliance, HDFC and ICICI had collectively invested a staggering Rs 237 crore in October, shows the report. The Gujarat-based non-banking financial company (NBFC) raised around Rs 460 crore from its IPO. Notably, the portions of shares reserved for institutional investors saw a subscription of 149.3 times last month.
Other three companies in which mutual funds lapped up include General Insurance Corporation of India (Rs 203 crore), Reliance Nippon Life Asset Management (Rs 141.5 crore) and Mahindra Logistics (Rs 114 crore). In case of GIC Re, UTI alone had invested Rs 150 crore. Interestingly, the portion of shares reserved for institutional investors in the GIC Re IPO had seen demand to the tune of 2.25 times, while the portion of shares reserved for retail investors and non-institutional investors were subscribed 60% and 22%, respectively. Notably, Reliance Nippon Life Asset Management’s Rs 1,542-crore initial public offering (IPO) was oversubscribed 81.37 times even as institutions bid for 118.4 times the portion reserved for them.