Mutual funds went big on IPOs: Here're the top buys and sells in July

Mutual fund (MF) equity schemes received a record Rs 22,583 crore of net inflows in July. This provided money managers plenty of dry powder to invest in the stock markets. According to Abhilash Pagaria, assistant vice-president, Edelweiss Alternative Research, MFs pumped in nearly Rs 6,000 crore in four companies that came out with initial public offerings (IPOs) in July. 

They invested Rs 4,448 crore in Zomato, Rs 1,083 crore in GR Infra, Rs 210 crore in Tatva Chintan Pharma, and Rs 142 crore in Rolex Rings. Market observers say besides applying in IPOs, some fund managers bought more shares in some of these companies, particularly Zomato, following their listing. Besides IPOs, fund managers were bullish on the financial space, with HDFC Bank, ICICI Bank, and Bajaj Finance emerging as top buys, after Zomato. 

Stocks where fund managers pruned holdings included Infosys, Kotak Mahindra Bank, Grasim, and Reliance Industries. In the small-cap universe, top buys included Equitas Holdings (Rs 139 crore investment), Hudco (Rs 127 crore) and Alicon Castalloy (Rs 119 crore). 

Among the prominent buys in the mid-cap space were Indraprastha Gas (Rs 942 crore), Aditya Birla Fashion (Rs 272 crore) and Emami (Rs 227 crore). They booked profits in Happiest Minds (Rs 261 crore selling) and JSW Energy (Rs 182 crore).