India initial public offerings (IPOs) in 2024 have witnessed record-breaking anchor investments from foreign institutional investors (FIIs) and mutual funds (MFs), surpassing Rs 45,650 crore. This marks a new milestone, surpassing the previous record of Rs 42,558 crore set in 2021.
FIIs contributed a substantial Rs 25,300 crore to anchor investments, the highest since 2021 when their investments crossed Rs 29,000 crore, according to data from Prime Database. MFs also set a historic record, investing Rs 20,351 crore—more than three times the amount invested in the previous year. In comparison, MFs had previously invested Rs 13,528 crore in 2021, driven by strong inflows into equity schemes.
Investment Breakdown: FIIs vs MFs
Together, FIIs and MFs have invested more than three times the amount of the previous year’s combined anchor investments. However, for the first time in two years, MF contributions were slightly lower than FPI investments, with MF investments trailing FIIs by nearly 20%. In 2022 and 2023, MFs had led FPI investments in anchor books.
Noteworthy IPOs and Their Anchor Investments
Several high-profile IPOs attracted significant anchor investments this year, including Hyundai Motors India, Swiggy, NTPC Green Energy, and Ola Electric Mobility.
- Hyundai Motors India: FPIs invested Rs 4,545 crore in the anchor book, nearly 50% higher than MFs.
- Swiggy: FPIs contributed Rs 2,100 crore, slightly surpassing MF investments.
- NTPC Green Energy: MFs contributed Rs 1,570 crore, outpacing FPIs, who invested Rs 1,493 crore.
Top Anchor Investors
The leading foreign institutional investors (FIIs) this year include:
- Government Pension Fund Global: Rs 1,273 crore
- Government of Singapore: Rs 1,262 crore
- New World Fund Inc: Rs 1,256 crore
- Nomura Funds Ireland PLC: Rs 783 crore
- Abu Dhabi Investment Authority: Rs 730 crore
Top mutual fund anchor investors include:
- ICICI Prudential MF: Rs 2,261 crore
- Nippon India MF: Rs 2,064 crore
- HDFC MF: Rs 2,025 crore
- SBI MF: Rs 1,870 crore
- Kotak Mahindra MF: Rs 1,485 crore
Record-Breaking Year for IPOs in 2024
Indian companies have raised over Rs 1.5 lakh crore through 75 mainboard IPOs in 2024, setting a record high. This surpasses the Rs 49,435 crore raised from 57 IPOs in 2023 and Rs 59,301 crore from 40 IPOs in 2022.
Growing Role of Domestic Institutional Investors (DIIs)
The participation of domestic institutional investors (DIIs) has seen a noticeable increase over the past four years, thanks to mutual funds benefiting from steady inflows into equity schemes. This year alone, inflows into open-ended equity funds have reached Rs 3.53 lakh crore, compared to Rs 1.61 lakh crore in 2023 and 2022.
The Role of Anchor Investors
Since the Securities and Exchange Board of India (SEBI) introduced the concept of anchor investors in 2009, these institutional investors have played a crucial role in stabilizing the IPO market. By committing large investments early in the process, anchor investors help build credibility, foster trust, and generate demand for IPOs, benefiting both companies and retail investors.
2024 unprecedented IPO performance demonstrates the growing confidence of institutional investors in India market, highlighting the country vibrant investment landscape.
