Mutual funds have emerged as major players in India’s primary market this year, investing around ₹22,750 crore in initial public offerings (IPOs) till mid-October 2025. This accounts for nearly 19% of the total ₹1.22 lakh crore raised from IPOs so far, according to news reports.
Fund houses deployed ₹15,158 crore through anchor investments and another ₹7,590 crore in the Qualified Institutional Buyer (QIB) segment. With consistent Systematic Investment Plan (SIP) inflows averaging over ₹20,000 crore per month, mutual funds have ample liquidity to invest in new issues. This strong domestic support has helped offset periods of weak foreign investor participation.
Large issues have attracted the bulk of MF participation. The five biggest IPOs (Tata Capital, HDB Financial Services, LG Electronics India, Hexaware Technologies, and Ather Energy) together raised ₹51,000 crore and drew nearly 44% of total MF investments.
Among these, Hexaware Technologies received ₹3,548 crore from funds, about 40% of its issue, while Ather Energy secured ₹1,379 crore. Other major allocations went to Tata Capital, HDB Financial Services, and LG Electronics India, each between ₹1,800 crore and ₹2,200 crore. Smaller yet notable investments included Anthem Biosciences, Schloss Bangalore, and JSW Cement, which together drew over ₹2,200 crore.
At the smaller end, 32 IPOs (mostly under ₹400 crore) saw little or no mutual fund participation. Companies like Denta Water & Infra Solutions and Advance Agrolife did not receive any anchor or QIB investment.
The growing participation of mutual funds is transforming India’s IPO landscape. Earlier, the market depended heavily on foreign portfolio investors, but steady domestic inflows have made fund houses key players in price discovery and market stability. Their fundamental-based investing approach has helped align IPO valuations more closely with company performance.
Information technology and financial services have remained the most attractive sectors, together drawing about ₹9,100 crore, or 40% of total MF investment. Consumer, renewable energy, and industrial sectors also saw healthy participation, led by Ather Energy, Vikram Solar, JSW Cement, and Schloss Bangalore.
Read more: Sensex Weekly Expiry: Sammaan Capital Ltd Placed Under F&O Ban on Oct 23, 2025.
Mutual funds are reshaping India’s primary market by providing a strong and steady source of capital. With nearly 200 IPOs in the pipeline, MF participation is expected to remain strong, ensuring continued depth, stability, and diversity in the country’s IPO landscape.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual fund investments are subject to market risks. Read all the related documents carefully before investing.
Published on: Oct 23, 2025, 9:17 AM IST
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