**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 compared to the previous quarter. This surge in investment is driven by consistent inflows into equity schemes via systematic investment plans (SIPs) and lump-sum investments.
According to data sourced from PRIME Database, mutual funds have played a pivotal role in anchoring IPOs, with their participation as anchor investors rising by 32% to ₹5,129 crore in the last quarter.
### Surge in Large Issuances
Mutual funds’ investment in IPOs as qualified institutional buyers (QIBs) rose significantly, climbing from ₹5,689 crore in the June quarter to ₹6,420 crore in the September quarter—an increase of 13%. This boost is largely attributable to a surge in large issuances over recent months.
Notably, the number of fresh issuances jumped sharply to 46 in the September quarter, up from just 15 in the previous quarter, reflecting growing market activity.
### Market Influence and Role as Anchor Investors
Mutual funds serve a crucial role as anchor investors in IPOs. Unlike non-anchor QIBs, mutual funds commit to mandatory lock-in periods—holding 50% of their shares for 30 days and the remaining shares for 90 days. This commitment provides greater stability during IPO listings.
Despite prevailing market volatility and benchmark indices delivering muted returns this year, investors continue to place their trust in mutual funds as a way to participate in India’s long-term growth story.
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*Stay tuned for more updates on the Indian equity markets and IPO activity.*
https://www.newsbytesapp.com/news/business/mutual-funds-ipo-investments-rise-13-in-september-quarter/story