Massive investment of Mutual Funds and FPI in IPO as Anchor Investor


MUMBAI: Mutual funds and foreign institutional investors (FPIs) are pouring more money into the initial public offerings (IPOs) than anchor investors in the current year.

As an anchor investor, FPIs have so far invested Rs 5 crore in 2021, which is approximately six times as much as last full calendar year and more than nine times as compared to 2016. According to a research firm, the figure for mutual funds is Rs 15 crore.

The combined investment of mutual funds and FPIs for the current year is five times higher than last year.

New age digital companies like Paytm, Zomato, Nayaka have received huge sums in the form of anchor investments. In Paytm, FPI has received an anchor investment of Rs 216 crore, while Zomato has received an anchor investment of Rs 3 crore and Nayaka Rs 150 crore.

The 2009 and 2010 IPO cycles were led exclusively by foreign investors. The research firm's report says that the trend of anchor investments by domestic institutional investors has increased over the last four years. In Anchor Investment, certain shares are allotted to the buyer at a fixed price.


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