Mutual Fund Ipos Mop Up Rs 426cr More In 96-97

Contrary to popular perception, collections by mutual funds through initial public offerings (IPOs) increased by Rs 426.07 crore in 1996-97, according to a study by Credence, a Mumbai-based research outfit. It says the industry collected a total of Rs 2689.30 crore in the year, against Rs 2263.23 crore in 1995-96.

According to the study, 31 schemes were launched in 1996-97. The increase in collections was mainly on account of debt schemes, as most of the companies chose to launch fixed income schemes.

The study has taken into account collections only by new schemes, while ignoring the collections by open-ended schemes already in the market and those through switch-over or roll-over.

 

The Unit Trust of India, with a collection of Rs 2,270 crore from seven new schemes, continued to be in the limelight. In percentage terms, it had the lions share of business, with 84.40 per cent of the total collections by the industry.

The figures also show that private sector companies, with a combined collection of Rs 266.60 crore, outperformed public sector mutual funds (apart from UTI), which could collect only Rs 152.70 crore.

Tax-savings schemes registered the most dismal performance, with a meagre Rs 91.30 crore collected by all the eight schemes put together.

The tax savings sector suffered a fall of 73.39 per cent, compared with its 1995-96 figure of around Rs 343 crore collected by 15 schemes.

According to the study, UTI, with a collection figure of Rs 70 crore, heads the list, followed by Kothari Pioneer (Rs 8 crore) and Sundaram Newton (Rs 5 crore). UTI insiders however say the amount is close to Rs 100 crore.

LIC Mutual was a distant second, with Rs 151.20 crore collected through three schemes. Templeton, with two launches during in the last financial year, occupied the third spot with a collection figure of Rs 84.70 crore.

Further, three schemes were not taken into account, although they were launched in March. These are High Interest Fund of ITC Threadneedle, Tata Income Fund of Tata MF and Kothari Pension Plan of Kothari Pioneer. All these schemes are open for subscription till April.

Eight asset management companies, which had launched schemes during 1995-96, were absent this time. These are 20th Century MF, Birla Capital MF, GIC Mutual, IDBI Mutual, Jardine Flemming AMC, PNB Mutual, Reliance Capital AMC and SBI Mutual.

There were five new entrants into this sector during 1996-97: Cholamandalam MF (Rs 10 crore), Escorts MF (Rs 20.95 crore), First India MF (Rs 1 crore), Sundaram MF (Rs 17 crore) and Anagram MF (5.36 crore).