Size has proved a hurdle for small fund houses wanting to invest in initial public offerings (IPOs) of equity. Some of the top mutual funds (MFs) did participate in recent offers as anchor investors but their smaller counterparts largely stayed away - and, not always by choice.
Since January 2015, MFs have invested Rs 2,900 crore as anchor investors in IPOs, says Prime Database. Of this, the top five contributed nearly 55 per cent, with ICICI Prudential MF (Rs 355 crore) and HDFC MF (Rs 351 crore) investing the most. Canara Robeco MF, Motilal Oswal MF and BNP Paribas MF are the only funds with total assets under management of less than Rs 10,000 crore each to figure in the list of anchor investors. Between them, the latter three funds invested Rs 55 crore in five IPOs.
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