ICICI Prudential Leads Mutual Fund Surge with ₹5,822 Crore Investment in ITC

18 Apr 2024 , 12:28 PM

ICICI Prudential Mutual Fund emerged as a significant player in the Indian stock market by acquiring shares worth ₹5,822 Crore in ITC during March, representing a substantial portion of the total mutual fund (MF) investment in the conglomerate, which stood at ₹8,560 Crore for the month.

The acquisition involved ICICI Prudential purchasing approximately 13.85 Crore shares in ITC through block deals valued at ₹12,695 Crore, demonstrating a sizable commitment to the company's stock.

In addition to ICICI Prudential, other mutual funds also showed interest in ITC during March, with a total investment of around ₹2,991 Crore, while a few funds divested their stakes. One mutual fund maintained its position without making any new purchases or sales.

Presently, a total of 38 mutual funds have investments in ITC, collectively holding shares valued at ₹62,063 Crore, which accounts for approximately 1.8% of the total assets under management (AUM) in the Indian mutual fund industry.

Apart from ICICI Prudential, prominent mutual fund houses such as Nippon, UTI, DSP, Kotak Mahindra, Axis, Aditya Birla, and SBI Mutual Fund also made substantial investments in ITC during March, further solidifying the conglomerate's position in the portfolios of mutual funds.

The investment scenario in ITC saw a significant development on March 13 when British tobacco company BAT divested 43.68 Crore shares in ITC for ₹17,500 Crore, reducing its stake in the conglomerate from 29% to 25.5%. BAT announced its intention to utilize the proceeds from the stake sale to repurchase BAT shares.

In addition to ITC, mutual funds also allocated significant funds to other top-performing stocks in March, including Tata Consultancy Services Ltd, HDFC Bank, Reliance Industries, Hindustan Unilever, and Interglobe Aviation, while reducing exposure to stocks like Bajaj Finance, State Bank of India, Bharti Airtel, and ICICI Bank.

ICICI Prudential Mutual Fund, established in 1993 as a joint venture between ICICI Bank and Prudential plc, holds the position of the second-largest asset management company in India, contributing to the diverse landscape of the Indian mutual fund industry.

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