Luxury furniture manufacturer Stanley Lifestyles’ initial public offering (IPO) hit the D-street on June 21, 2024 with an aim to raise Rs 537 crore. Of this, Rs 200 crore is intended from fresh issue and the remaining Rs 337 crore from the offer for sale of already listed shares. Stanley Lifestyles had already raised Rs 161.10 crore from anchor investors on June 20, 2024 by allocating 43.66 lakh shares to them.
Out of these, eight mutual fund schemes bought about 61 per cent of the total allocation to anchor investors. SBI Consumption Opportunities Fund, Nippon Life India Trustee, HDFC Mutual Fund and Quant Mutual Fund were the top four anchor investors who bid for the IPO.
SBI Consumption Opportunities Fund invested Rs 25.61 crore in the furniture manufacturer, whereas Nippon India Small Cap Fund invested Rs 17.22 crore. The lock-in period for anchor investors is mandated to be at least 30 days post-allotment.
Mutual funds are playing a larger role in anchoring IPOs and had surpassed foreign portfolio investments (FPIs) in terms of funding anchor investment in the last two calendar years. As they invest a considerable portion of investors’ funds to anchor these IPOs, let’s see how much they have delivered to investors.
SBI Consumption Opportunities Fund
The SBI Consumption Opportunities Fund is a thematic fund investing in the consumption space and has consistently beaten its benchmark across various timeframes. Though its 1-year return of 35.72 per cent is marginally lower than the benchmark return of 36.29 per cent, the fund has outperformed the benchmark both in the 3-year and 5-year horizons by 5 per cent each, delivering 26.99 per cent and 23.72 per cent returns, respectively.
Nippon India Small Cap Fund
As a small-cap fund, Nippon India Small Cap Fund has given impressive returns mirroring the category performance. However, its one-year return of 57.92 per cent falls short of the benchmark 63.08 per cent, though it is much higher than the category average of 50.99 per cent. The trend continues in the 3-year and 5-year periods as well when the fund clock 35.42 per cent and 35.14 per cent returns, respectively, beating both category returns and the benchmark returns by a huge margin.
Nippon India Flexi Cap Fund
Its 1-year return of 44.40 per cent is 5 per cent higher than benchmark, and 3 per cent higher than the category average. With a daily assets under management (AUM) of Rs 7,648.52 crore, the fund falls marginally short of the category average, registering 18.99 per cent gains in a 3-year tenure.
Bandhan Midcap Fund
On the Association of Mutual Funds in India (Amfi) website, as of today, the return of Bandhan Midcap Fund is only available for the one-year tenure. The fund clocked 55 per cent in one year as against the category average of 55.63 per cent.
Motilal Oswal Large Cap Fund
According to data from Valueresearch, Motilal Oswal Large Cap Fund has delivered the highest 3-month trailing return when compared to the three other largest funds in the large-cap category. Motilal Oswal Large Cap Fund gave 17.79 per cent returns in this tenure, beating competitors by a 5-8 per cent range. However, no other tenures were available for comparison.
Quant Consumption Fund
Quant Consumption Fund, with its 3 month trailing returns, shows that the fund is trailing its competitors. The consumption-themed fund has clocked 8.46 per cent, whereas its competitors have given 15-16 per cent returns.
Franklin India Opportunities Fund
This fund seeks to leverage special situations, such as corporate restructuring, change in government policy, or, it invests in companies going through temporary challenges. The fund saw a whopping one-year return of 76.76 per cent, an impressive 58.74 per cent in two years and 32.01 per cent in three years. In five years, Franklin India Opportunities Fund clocked 27.52 per cent returns.
HDFC Dividend Yield Fund
HDFC Dividend Yield Fund, which invests in companies that pay the highest dividend relative to its share price, has delivered huge returns in the last three years. The one-year return stands at 48.29 per cent return, while two- and three-year returns stand at 41.11 per cent and 27.98 per cent return, respectively.
