Three reasons why mutual funds are keen on IPOs4 min read 22 Oct 2017, 11:25 PM IST
The assumed predictability of asset gathering and the lack of quality growth businesses have created a huge market expectation for the mutual fund issuances
The Indian mutual fund industry opened up to the private sector in 1993. During its 24-year journey, the industry has seen numerous rounds of entries and exits by different entities. It has also seen significant growth and consolidation over this period. Yet, it remained privately owned during this entire phase. No mutual fund chose to come out with an initial public offering (IPO) during this period. The two bull markets of 2000 and 2008 did not really create any urgency in the industry to list. But this time it seems different. Every large mutual fund company in the industry is considering monetizing the asset management business. Soon, we could well see half a dozen listed names among mutual funds. Everybody is looking at the listing opportunity very differently this time.