Millennium Post

Companies’ total February QIP mop-up highest in 28 months

Indian companies raised over Rs 5,600 crore by issue of shares to institutional investors in February 2013, the highest monthly mop-up in over two years.

Four Qualified Institutional Placements (QIPs) together raised a total of Rs 5,676.2 crore in February this year, marking a sharp rise from Rs 364 crore garnered through QIPs in the previous month, as per the latest data from market regulator Sebi.

This is also the largest amount of QIP funds raised in a month since October 2010, when companies had garnered Rs 6,338 crore though ten QIP issues. QIP is a capital raising tool whereby a listed firm can issue equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.

According to market experts, positive trends in the capital market during February helped mop up these funds. 'Buoyed by market sentiment, the companies were using the QIP route to raise funds,' CNI Research head Kishor Ostwal said.

Cumulatively, the companies have raised Rs 14,885 crore through 43 issues via this route, in the first 11 months of 2012-13. In the same period of the earlier fiscal, the companies had raised a dismal Rs 1,043 crore though nine issues.

Experts believe that the amount raised via QIP could have slipped in March, as the market was on a downtrend. The data for the month has not been published so far.
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