Fund managers continued to invest heavily in IPOs during August, according to data collected by Edelweiss. Chemplast Sanmar, Nuvoco Vistas, Devyani International, Car Trade Tech, and Krsnaa Diagnostics were among the top picks for mutual fund companies in the past month. The high interest in IPOs made Chemplast Sanmar the most purchased stock by fund managers by value, ahead of private sector lender ICICI Bank. Some initial public offerings saw a marginal drop in their listing gains, but Dalal Street remains enthusiastic about public offerings. So far this year, 37 companies have debuted on the stock exchange.
Fund managers bet on IPOs
-Chemplast Sanmar has been the most popular IPO among fund managers. The newbie saw various fund companies buy a total of 3.99 crore of Chemplast Sanmar shares. The value of the same was Rs 2,299 crore.
-Nuvoco Vistas was the second most purchased share among new entrants. 2.86 crore of Nuvoco Vistas shares have been added to mutual fund programs, bringing the total value to Rs 1,590 crore.
-Pizza Hut and KFC operator Devyani International also found their way to the plaques of various fund managers, who bought 2.65 crore of shares in the publicly traded company last month. The total value of Devyani International shares purchased by mutual funds was Rs 331 crore.
-Krsnaa Diagnostics was another IPO which was favored by fund managers in August, picking up 32 lakh shares of the same value of Rs 3.04 crore.
Other IPOs that mutual funds showed interest in last month were CarTrade Tech, Windlas Biotech, Exxaro Tiles and Aptus Value Housing.
ICICI Bank occupies the first place
ICICI Bank was the second most purchased security by mutual fund companies in the previous month, according to Edelweiss. As a result, large-cap banking stocks have retained their top spot in the portfolios of various fund managers.
ICICI Bank is the largest security held by Aditya Birla Sun Life Mutual Fund, HDFC Mutual Fund, ICICI Prudential, DSP Mutual Fund, IDFC Mutual Fund, Edelweiss, Franklin Templeton, Kotak Mutual Fund and Tata Mutual Fund. For all other large fund houses, ICICI Bank is among the top 10 holdings.
During the month of August, mutual funds also changed sector weighting. “Mutual funds have shown interest in NBFCs, technology, private banking, telecommunications, consumer, oil and gas and insurance, causing their weight to increase from month to month. other. Metals, automobiles, health care, food banks, consumer durables, utilities and cement saw their weight drop month over month, ”the company said. Motilal Oswal brokerage in a report.
Private banks were the top sector held by mutual funds with a weighting of 17.1%, followed by technology, NBFC and healthcare.