Mutual Funds Embrace Newly-Listed Companies in July 2024

Mutual funds demonstrated increased activity in July, actively participating in both anchor books of newly listed companies and initial public offerings (IPOs). Emcure Pharmaceuticals emerged as the most popular choice among mutual funds, with a significant portion of their investments allocated to this newly listed company.

Data reveals that mutual funds purchased 6.59 million shares of Emcure Pharmaceuticals worth ₹860 crore in July. Other newly listed companies that attracted substantial mutual fund interest include Bansal Wire Industries and Pearl Global Industries, with investments of ₹506 crore and ₹327 crore, respectively.

Emcure Pharma, which debuted on July 11, experienced a remarkable 35% premium on its first day of trading, closing at ₹1,361 per share. Bansal Wire Industries, listed on July 10, saw a similar surge with a 37% premium from its price band of ₹256 per share. Akums Drugs & Pharmaceuticals, listed on August 7, garnered a 17% premium from its issue price of ₹679 per share.

Key Mutual Fund Investments in Newly-Listed Companies

Nippon India MF emerged as the largest investor in Emcure Pharma, acquiring 14.98 lakh shares worth ₹195.64 crore. Aditya Birla Sun Life MF and Mahindra Manulife MF followed with investments of ₹129 crore and ₹91 crore, respectively. Other notable investors included Bajaj Finserv, HDFC MF, Axis MF, ICICI Prudential MF, and SBI MF.

In Bansal Wire Industries, Kotak Mahindra MF led the way with a ₹144 crore investment, followed by Invesco and HSBC MF. DSP, HDFC, and SBI MF also participated in the investment round.

For Pearl Global Industries, HDFC MF took the lead with a ₹203 crore investment, followed by ICICI Prudential MF and Tata MF.

Additional Mutual Fund Investments and Exits

Other newly-listed companies that attracted mutual fund investments in July include Akums Drugs & Pharma, Entero Healthcare Solutions, Sanstar, R Systems International, Navkar Corp, Zuari Industries, Forbes Precision Tools, Ambika Cotton Mills, and Sree Jayalakshmi Auto.

On the other hand, mutual funds completely exited positions in Vascon Engineering, Borosil Scientific, Siyaram Silk Mills, and Shilchar Technologies.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.