**Mutual Funds Pump ₹6,420 Crore into IPOs During September Quarter**
*By Dwaipayan Roy | Oct 11, 2025, 05:29 PM*
Indian mutual funds invested a substantial ₹6,420 crore in initial public offerings (IPOs) during the July-September quarter of 2025, marking a 13% increase from the previous quarter. This surge is driven by steady inflows into equity schemes, fueled by both systematic investment plans (SIPs) and lump-sum investments.
According to data sourced from the PRIME Database, mutual funds have continued to play a pivotal role in anchoring IPOs. Their participation as anchor investors rose by 32% to ₹5,129 crore in the last quarter, underscoring their growing influence in the IPO ecosystem.
**Surge in Large Issuances**
Investment by mutual funds in IPOs through qualified institutional buyers (QIBs) also saw a notable rise, increasing 13% to ₹6,420 crore in the September quarter from ₹5,689 crore in the June quarter. This growth is attributed largely to a surge in the number of large issuances over recent months.
Notably, the number of fresh IPO issuances jumped significantly to 46 in the September quarter from just 15 in the preceding quarter, reflecting heightened market activity and investor interest.
**Mutual Funds as Anchor Investors**
Mutual funds serve a critical role as anchor investors in IPOs by committing to a mandatory lock-in period—holding 50% of their allotted shares for 30 days and the remaining for 90 days. This distinguishes them from non-anchor QIBs, which do not have any such lock-in requirements.
Despite market volatility and benchmark indices delivering modest returns this year, investors continue to place significant bets on mutual funds, viewing them as a credible vehicle to participate in India’s long-term growth story.
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**Summary**
The July-September 2025 quarter saw mutual funds increase their investment in IPOs by 13% to ₹6,420 crore, supported by strong inflows and a jump in large IPO issuances. Their growing role as anchor investors with mandatory lock-in periods underscores mutual funds’ importance in the primary market, reflecting investor confidence amid a challenging market environment.
https://www.newsbytesapp.com/news/business/mutual-funds-ipo-investments-rise-13-in-september-quarter/story