AMCs invested in IPO market to encash growth opportunities, says Ventura Securities

At a time when Indian equities look a bit inflated, asset management companies (AMCs) are pumping money into the IPOs to take advantage of the growth opportunities the primary market offers.

"During this IPO season, mutual funds are taking advantage of the short term windfall gains that IPOs are currently delivering," said Ventura Securities in its blog post.

In the last year, the total issue size of all the IPOs was over Rs 43,000 crore, according to the brokerage firm. A whopping 1,051 schemes have applied for the IPOs, of which only 582 schemes are currently holding on to those IPOs’ shares. This implies that about 45 percent of the schemes did not hold on to the shares of the IPO.