Zomato becomes a top pick for large mutual fund houses in July

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Zomato becomes a top pick for large mutual fund houses in July
BCCL
  • India’s biggest mutual fund houses added one common stock to their equity portfolio in July — Zomato.
  • Shares of Zomato were listed on July 27 on BSE and NSE.
  • Top five mutual fund houses added 1-4 crore of Zomato stocks in July 2021.
Top five mutual funds — SBI MF, HDFC MF, ICICI Prudential MF, Aditya Birla Sun Life MF and Axis MF have added one common stock to their portfolio in July — the newly listed food delivery firm Zomato.

These five mutual fund houses comprise more than 55% of the industry’s total assets under management (AUM) of ₹35.31 lakh crore.

Zomato was listed on exchanges on July 27 with a 51% premium. While some analysts believe that the valuation is too expensive for a loss making company, some feel it is a futuristic company and bound to grow.

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These large fund houses have bought more than a crore shares of the food delivery company in July. SBI Mutual Fund (MF) bought the highest at 4.24 crore shares followed by Axis Mutual Fund with 3.51 crore of Zomato stock.

Top 5 fund housesZomato shareholding (in crore)
SBI MF4.24
HDFC MF1.83
ICICI Prudential MF1.38
Aditya Birla Sun Life MF1.7
Axis MF3.51

Meanwhile, there were three other initial public offerings (IPOs) as well, which debuted in July and opened with more than 90% premium on exchanges — Clean Science and Technology, GR Infraprojects and Tatva Chintan Pharma Chem.

Shares of Clean Science and Technology were bought by HDFC MF, Axis MF and SBI MF. GR Infraprojects was picked by SBI MF, ICICI Prudential and HDFC MF and Tatva Chintan Pharma Chem was bought by Axis MF in July.
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