Mutual Funds Pour ₹8,752 Crore into New IPOs: Focus on Small-Cap Companies

Mutual funds invested approximately ₹8,752 crore in newly listed companies during the quarter ended September 2025, according to a report by Ventura Securities noted by CNBC-TC18. As per report, major share of these investments flowed into small-cap firms, highlighting fund managers’ continued confidence in emerging and fast-growing businesses.

Among the new listings, only Anthem Biosciences was classified as a mid-cap, while the rest, including Aditya Infotech, JSW Cement, Urban Company, and Bluestone Jewellery & Lifestyle fell into the small-cap category.

The study further indicated that 9 mid-cap stocks are likely to move into the large-cap category, while 6 small-cap firms could be upgraded to mid-caps in the upcoming market capitalisation review by the Association of Mutual Funds in India (AMFI).

Market Trends and Institutional Flows

The September quarter witnessed a broad-based correction across equity markets. The Nifty 50 fell 3.6%, while the BSE Midcap and Small-Cap indices slipped 4.1% and 4.6%, respectively. During the period, Foreign Institutional Investors (FIIs) offloaded equities worth ₹7,662 crore, whereas Domestic Institutional Investors (DIIs) remained net buyers, infusing ₹22,111 crore. Between April and September 2025, FIIs registered cumulative net outflows of ₹3,790 crore, even as DIIs injected ₹36,270 crore into the markets.

Mutual Fund Flows Remain Robust

Equity mutual funds attracted ₹1.06 lakh crore in inflows during the September quarter, up sharply from ₹66,869 crore in the previous quarter. Systematic Investment Plan (SIP) contributions hit an all-time high of ₹29,361 crore in September, compared with ₹27,269 crore in June.

Also Read: ITI Mutual Fund Launches Diviniti Equity Long Short Fund Under SEBI’s SIF Platform 

While debt-oriented schemes saw net outflows of ₹3,156 crore, hybrid funds received healthy inflows of ₹45,570 crore. However, the pace of growth in small-cap and mid-cap fund assets slowed to 0.6% and 0.4%, respectively, down from double-digit expansion in the prior quarter, reflecting the recent market correction.

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. 

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