**Mutual Funds Invest ₹6,420 Crore in IPOs During September Quarter**
*By Dwaipayan Roy | Oct 11, 2025, 05:29 PM*
Indian mutual funds have significantly ramped up their participation in initial public offerings (IPOs), investing a total of ₹6,420 crore during the July-September quarter of 2025. This figure marks a 13% increase compared to the previous quarter, underlining the growing role of mutual funds in the IPO market.
The surge in investments is primarily driven by consistent inflows into equity schemes, fueled by systematic investment plans (SIPs) and lump-sum investments from investors. According to data from the PRIME Database, mutual funds have also stepped up as anchor investors, with their participation rising by 32% to ₹5,129 crore in the last quarter.
### Surge in Large Issuances
The boost in mutual funds’ IPO investments is reflected through their participation as qualified institutional buyers (QIBs). Investment through QIB channels increased by 13%, from ₹5,689 crore in the June quarter to ₹6,420 crore in September. This growth aligns with a notable rise in the number of fresh issuances, which jumped to 46 compared to just 15 in the previous quarter.
### Mutual Funds as Anchors: Market Influence
Mutual funds play a critical role as anchor investors in IPOs. Unlike non-anchor QIBs, mutual funds are subject to mandatory lock-in periods — they commit to holding 50% of their allocated shares for 30 days and the remainder for 90 days. This lock-in mechanism provides stability and confidence to the market during IPO listings.
Despite ongoing market volatility and lackluster returns from benchmark indices this year, investor confidence in mutual funds remains strong. Many are leveraging mutual funds to capitalize on India’s long-term growth potential and emerging opportunities.
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https://www.newsbytesapp.com/news/business/mutual-funds-ipo-investments-rise-13-in-september-quarter/story
