Mutual funds invest ₹8,752 crore in IPOs, focus on small-cap firms: Ventura

Mutual funds invested about ₹8,752 crore in newly listed companies during the quarter ended September 2025, according to a study by Ventura Securities. The data shows that most of these allocations were directed toward small-cap firms, indicating continued participation by fund managers in smaller and emerging businesses.

Only one company among the new entrants — Anthem Biosciences — was categorised as a mid-cap, while others such as Aditya Infotech, JSW Cement, Urban Company, and Bluestone Jewellery and Lifestyle were listed as small caps.

Company	Market value (₹ crore)	Category
Anthem Biosciences	2,754	Mid Cap
Aditya Infotech	1,272	Small Cap
JSW Cement	1,039	Small Cap
Travel Food Services	793	Small Cap
Urban Company	777	Small Cap
Bluestone Jewellery & Lifestyle	452	Small Cap
Saatvik Green Energy	383	Small Cap
National Securities Depository	363	Small Cap
Indiqube Spaces	340	Small Cap
Vikram Solar	326	Small Cap

The study also suggested that nine mid-cap companies could move into the large-cap category, while six small-cap firms may be reclassified as mid-caps in the next market capitalisation update by the Association of Mutual Funds in India (AMFI).

Broader investment trends

The September quarter saw a mixed performance in equity markets. The Nifty 50 index declined by 3.6%, while the BSE Midcap and Small-Cap indices fell by 4.1% and 4.6%, respectively. Foreign Institutional Investors (FIIs) were net sellers of equities worth ₹7,662 crore, while Domestic Institutional Investors (DIIs) were net buyers with inflows of ₹22,111 crore.

Between April and September 2025, FIIs recorded net outflows of ₹3,790 crore, whereas DIIs invested ₹36,270 crore during the same period.

Mutual fund flows

Equity mutual funds registered inflows of ₹1.06 lakh crore in the September quarter, higher than ₹66,869 crore in the previous quarter. Systematic Investment Plan (SIP) contributions reached a record ₹29,361 crore in September 2025, up from ₹27,269 crore in June.

Debt-oriented schemes saw outflows of ₹3,156 crore, while hybrid funds received inflows of ₹45,570 crore. The study noted that growth in small-cap and mid-cap fund assets slowed to 0.6% and 0.4%, respectively, compared to double-digit expansion in the previous quarter, reflecting the broader market correction.