Mutual funds take ₹2,495 crore exposure in NSE IPO anchor book: Nippon India Large Cap tops the list of 10 schemes

Mutual fund schemes have been allotted shares worth nearly ₹ 2,495 crore in the anchor portion of the NSE IPO, with 29 domestic mutual funds participating through 98 schemes.

The anchor book comprises institutional investors who are allotted shares before an IPO opens for public subscription.

National Stock Exchange of India (NSE) finalised its anchor allocation on 16 September, allotting 3.78 crore equity shares at ₹ 1,785 a piece. The total anchor allocation was worth about ₹ 6,746 crore. Of this, mutual fund schemes received 1.40 crore shares, accounting for 36.98% of the total shares allotted to anchor investors.

For investors who already hold these mutual fund schemes, the allocation provides visibility into which funds have taken exposure to NSE at the IPO stage and the amount committed.

It can also help investors track how different schemes are positioning themselves around one of the country's most closely watched capital market-related IPOs.

The 10 mutual fund schemes with the largest allocations received shares worth a combined ₹ 921.88 crore. This was around 37% of the ₹ 2,494.99 crore allotted to domestic mutual funds.

*Source: NSE IPO Anchor Allocation Report, Anchor investor allocation price is ₹ 1,785

The allocation shows that several large-cap and diversified equity schemes have chosen to participate in NSE's IPO at the anchor price of ₹ 1,785 per share.

Nippon India Large Cap Fund was allotted 7,84,312 shares at the anchor price of ₹ 1,785 per share. This translates to a total allocation of ₹ 13.99 crore, or nearly ₹ 14 crore.

Invesco India Contra Fund received the same number of shares and allocation, making both schemes the largest mutual fund participants in the anchor book.

SBI Banking & Financial Services Fund received the third-largest allocation at ₹ 100 crore, followed by HDFC Large Cap Fund at about ₹ 95.57 crore.

For an existing mutual fund investor, the size of the IPO allocation needs to be viewed in the context of the scheme's overall portfolio. An allocation of over ₹ 100 crore may appear large in absolute terms but could represent a much smaller proportion of a scheme's total assets.

For mutual fund investors, the anchor disclosure provides a snapshot of which schemes participated in the NSE IPO. Subsequent portfolio disclosures will show whether these schemes continue to hold the shares and how the exposure changes over time.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.