IPO Market Sizzles as Mutual Funds Pour Rs 13,500 Crore in October

The Indian IPO market witnessed robust participation from mutual funds in October 2025, with total investments crossing Rs 13,500 crore spread over ten public offerings. This strong involvement reflects an increased preference for large, quality IPOs driven by leading mutual fund players. Canara HSBC Life Insurance topped the charts in mutual fund demand, while IPOs like Tata Capital and Lenskart saw varying degrees of interest.

October's active investment phase illustrates the growing role of mutual funds in India's primary markets, boosting liquidity and price discovery. Mutual fund inflows helped anchor these new listings, balancing retail and institutional participation as the IPO ecosystem matures. This marks a continuation of the trend seen in 2025, where mutual funds have collectively invested over Rs 22,000 crore in IPOs year-to-date.

The active participation is underpinned by strong Systematic Investment Plan (SIP) inflows averaging above the Rs 20,000 crore monthly mark, supporting liquidity despite mixed foreign institutional investor flows. Target sectors attracting the highest mutual fund interest include financial services, technology, and consumer discretionary, indicating diversified sectoral confidence.

Key Highlights

Mutual funds invested over Rs 13,500 crore in 10 IPOs during October 2025, led by Canara HSBC Life Insurance and other major fund houses.​

The IPO market saw mixed demand with top performers like Tata Capital and Lenskart drawing investor attention.​

Mutual funds’ cumulative investments in IPOs reached Rs 22,750 crore in 2025, solidifying their role as primary market drivers.​

Sustained SIP inflows averaging Rs 20,000 crore monthly underpin mutual fund liquidity, supporting high-profile IPOs.​

Sectoral preference remains strong in financial services, IT, and consumer discretionary IPOs, reflecting investor diversification.​

Sources: Moneycontrol, Economic Times, Business Today, Angel One, Jagran