Domestic mutual funds anchoring more listings as issue sizes shrink

Have subscribed to shares worth Rs 2,850 cr as 'cornerstone investors' in 20 IPOs so far in FY24

Domestic mutual funds (MFs) have underpinned demand for most public floats this year, dominated by small- and mid-sized initial public offerings (IPOs).

Of the 24 IPOs that have hit the market so far this financial year (2023-24, or FY24), MFs have played the role of ‘anchor investors’ in 20. They have subscribed to over 40 per cent, or Rs 2,850 crore, worth of shares of the Rs 6,900 crore on offer in the anchor category, according to data provided by PRIME Database, a firm that tracks primary market data.

In most cases, fund managers have also subscribed to more