Mutual funds go big on fresh issuances in November, shows data

Most of the MF investments in the three companies (Swiggy, Zomato and NTPC) are likely to have happened in the primary market, with mutual funds being major investors during the IPO anchor allotments

Fresh issuances in the equity market cornered the bulk of the mutual fund’s (MF) equity investments in November.     Swiggy and  NTPC Green--which made their market debuts last month-- along with Zomato dominated the MFs equity buy chart, cornering a cumulative investment of Rs 15,000 crore.

  Zomato has raised Rs 8,500 crore through a qualified institutional placement (QIP) in November.

 

Most of the MF investments in the three companies are likely to have happened in the primary market with mutual funds being major investors during the IPO anchor allotments. They were also large investors in Zomato’s QIP.

  Swiggy, which raised over Rs 5,000 crore via anchor investors, allocated over half of the quota to domestic fund houses. Zomato’s QIP also saw participation from top fund houses like ICICI Prudential MF, HDFC MF and Motilal Oswal MF.

 

The other top buys of MFs last month included Reliance Industries, Axis Bank and ICICI Bank, shows an analysis by Nuvama Alternative & Quantitative Research. 

 

The equity market, which has seen a sharp correction in October, saw the downward momentum continue in the first half of November. Many of the largecap names had seen deep cuts in their prices during the sell-off phase.

 

On the other hand, HDFC Bank was the most sold stock with MFs pulling out an estimated Rs 11,000 crore. None of the other stocks witnessed major MF selling. Power Grid Corporation was the second most sold stock with MFs pulling out Rs 1,700 crore.