Small Cap Fund Exits Aavas, Cuts IndiaMART Stake Amidst Big Block Deals

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AuthorRiya Kapoor|Published at:
Small Cap Fund Exits Aavas, Cuts IndiaMART Stake Amidst Big Block Deals
Overview

Small Cap World Fund has fully exited Aavas Financiers and reduced its stake in IndiaMART InterMESH through open market transactions on January 14. HDFC Mutual Fund stepped in to acquire a significant stake in Aavas Financiers, while Nalanda India Equity Fund bought into IndiaMART. Motilal Oswal Mutual Fund also offloaded shares in Polycab India.

Fund Movements Shake Portfolios

Small Cap World Fund, managed by Capital Group, divested its entire holding in Aavas Financiers and trimmed its stake in IndiaMART InterMESH on January 14. The fund offloaded 19.64 lakh shares, representing a 2.48 percent stake, in housing finance firm Aavas Financiers for ₹282.81 crore. Simultaneously, it sold 6.26 lakh shares, or 1.04 percent, of B2B marketplace IndiaMART InterMESH for ₹132.17 crore.

Strategic Acquisitions Emerge

Following Small Cap World Fund's exit, HDFC Mutual Fund emerged as a key buyer in Aavas Financiers, acquiring 19.5 lakh shares, equivalent to a 2.46 percent stake, for ₹280.87 crore. The transactions for Aavas Financiers occurred at ₹1,440 per share. In IndiaMART InterMESH, Nalanda India Equity Fund, managed by Nalanda Capital, acquired 11.18 lakh shares, a 1.86 percent stake, for ₹236.05 crore at a price of ₹2,110 per share.

Polycab India Sees Stake Sale

In a separate transaction, Motilal Oswal Mutual Fund reduced its exposure to Polycab India, selling 7.61 lakh shares representing a 0.5 percent stake. The sale amounted to ₹559.4 crore at ₹7,350.02 per share. As of September 2025, Motilal Oswal Nifty India Manufacturing ETF held 3.85 percent in the wires and cables manufacturer.

Market Reaction

The stock market reacted to these bulk deals. Aavas Financiers shares experienced a minor dip of 0.23 percent to ₹1,443.6. IndiaMART InterMESH stock declined by 1.95 percent to ₹2,114.5. Polycab India shares saw a more significant correction, falling 3.06 percent to ₹7,323.5 amid higher trading volumes on the NSE.

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