Like private investors, mutual funds took advantage of most of the flood of IPOs last year. According to a report by Ventura Securities, 36 companies raised Rs 43,000 crore through initial public offerings from June 1, 2020 to June 31, 2021. Mutual funds have participated in 35 of these IPOs. Of the total IPOs last year, 72 percent were listed at a premium, while 28 percent opened at a discount.
Many mutual fund IPOs post profits after the mandatory one-month lock-up period expires. A total of 1051 plans have applied for these IPOs, of which only 582 plans currently hold the shares of these IPOs. Nippon has been most aggressive in the AMC’s top 10 when it comes to IPO investments. It applied for 23 IPOs out of 36 IPOs published last year. ITI, Quantum, Shriram and Taurus MF did not apply for an IPO last year.
One of the most talked about IPOs of the year,
, saw 69.48 crore of shares trading on NSE on the first day for a total transaction of Rs 8625 crore. Such massive trading volumes in currently listed stocks are possible because institutional investors such as investment funds participate in them. During this IPO season, mutual funds are capitalizing on the short-term unexpected gains that IPOs are currently delivering, a release from Ventura Securities said.