India’s mutual fund industry recorded significant participation in the IPO market in October 2025, deploying more than ₹13,500 crore across 10 major public issues. This marks one of the most active months for institutional investment, reflecting continued confidence in India’s primary markets.
Strong Interest in Large Issues
Mutual funds were particularly active in some of the month’s biggest offerings.
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Canara HSBC Life Insurance emerged as the top draw, with MFs buying nearly 71% of the total issue — roughly ₹1,808 crore.
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LG Electronics India also secured substantial backing, with around ₹5,237 crore invested by mutual funds.
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WeWork India Management saw MF investments of approximately ₹1,414 crore, reinforcing the interest in consumer- and service-driven businesses.
Selective Approach in Other IPOs
While mutual funds were aggressive in certain deals, they adopted a more cautious stance toward others:
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The oversubscribed Tata Capital IPO saw MF participation of about ₹2,008 crore, representing only 13% of the issue size.
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Lenskart, despite its brand strength, attracted around ₹1,130 crore from MFs — close to 15% of the offering.
This indicates that fund managers remain selective, backing issues with strong valuations, balance sheets, or growth visibility.
What This Trend Indicates for Markets
The strong uptake signals:
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Growing institutional confidence in India’s equity and IPO markets.
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Ample liquidity within mutual funds, supported by steady SIP inflows and robust retail participation.
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A shift toward more diversified participation — with funds evaluating each IPO on fundamentals rather than broad market sentiment.
For retail investors and advisors, the trend highlights rising opportunities but also the need for careful assessment. Mutual fund participation often acts as a signal of institutional conviction, but it also reflects selective choices based on valuation comfort, governance quality, and long-term business prospects.
Source: MoneyControl