India’s mutual fund industry gets its hands on blockbuster IPOs like Paras Defence and others for ₹1500 crore in September

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India’s mutual fund industry gets its hands on blockbuster IPOs like Paras Defence and others for ₹1500 crore in September
BCCL
  • Shares of blockbuster IPOs like Paras Defence and Space Technologies, Ami Organics have been picked by the mutual fund industry in huge amounts in September.
  • This comes in line with the industry’s growing equity inflows and record SIP contribution every month.
  • As of September, the average asset under management of the MF industry stood at ₹37 trillion.
The ₹37 trillion mutual fund (MF) industry has together invested about ₹15.89 billion in five newly listed IPO shares in September.

IPO craze is not just limited to retail investors but also the mutual fund industry who have invested in many recently listed IPOs including blockbusters like Paras Defence and Space Technologies.

Nine asset management companies (AMCs) hold shares of diagnostic lab chain Vijaya Diagnostic Centre worth ₹823 crore.

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Here are new IPO stocks added by mutual funds in September 2021
CompanyMarket value (₹ crore)
Vijaya Diagnostic Centre823.45
Aditya Birla Sun Life AMC374.95
Sansera Engineering242.27
AMI Organics129.46
Paras Defence and Space Technologies19.25

Among these, Paras Defence and Space Technologies is one of the blockbuster IPOs in history as the stock opened at 171% premium on the listing day. Moreover, the stock has given 121% additional returns post listing.

Mutual fund industry’s aggressive buying can be attributed to positive equity inflows especially those through SIP every month. In September, SIP inflows hit an all time-high as inflows crossed ₹10,000 crore for the first time in a month

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This resulted in the overall mutual funds industry's assets under management rising to nearly ₹37 lakh crore in September, registering an over 33% growth compared to the year-ago period, showed AMFI data.

Robust buying across sectors and stocks giving significant returns has led to benchmark indices Nifty 50 and Sensex gaining nearly 30% returns in 2021 so far, becoming the top performers among other Asian equity markets.

SEE ALSO: Reliance Jio’s September earnings to be driven by aggressive subscriber additions

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