**Mutual Funds Pump ₹6,420 Crore into IPOs During September Quarter**

*By Dwaipayan Roy | Oct 11, 2025, 05:29 PM*

Indian mutual funds invested ₹6,420 crore in initial public offerings (IPOs) during the July-September quarter of 2025, marking a 13% increase from the previous quarter. This notable surge in investment is attributed to steady inflows into equity schemes via systematic investment plans (SIPs) and lump-sum investments.

According to data from the PRIME Database, mutual funds have played a crucial role in anchoring IPOs, with their participation as anchor investors rising by 32% to ₹5,129 crore last quarter.

### Surge in Large Issuances

Mutual funds’ investment in IPOs through qualified institutional buyers (QIBs) increased significantly, rising 13% from ₹5,689 crore in the June quarter to ₹6,420 crore in the September quarter. This growth is largely driven by a surge in large issuances over recent months.

The number of fresh issuances also jumped sharply to 46 from just 15 in the previous quarter, reflecting a more vibrant IPO market.

### Mutual Funds as Key Anchor Investors

Mutual funds play a vital role as anchor investors in IPOs. They commit to holding 50% of their shares for 30 days and the remaining shares for 90 days. This lock-in period requirement distinguishes them from non-anchor QIBs, which do not have any mandatory lock-in.

Despite market volatility and subdued benchmark index returns this year, investors continue to place strong confidence in mutual funds. Many see them as a strategic way to tap into India’s long-term growth story.

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https://www.newsbytesapp.com/news/business/mutual-funds-ipo-investments-rise-13-in-september-quarter/story