Millennium Post

Firms raise over Rs 2 cr through sale of shares

Fund-raising by Indian companies through issue of shares to institutional investors is gathering pace, rising to Rs 2,211 crore in August – highest in a month during the current fiscal.

Thus, the cumulative amount mobilised through the Qualified Institutional Placement [QIP] route during 2012-13 so far has reached Rs 4,651.5 crore, more than double the amount of Rs 2,163 crore garnered in the entire previous fiscal [2011-12].

'During August 2012, listed issuers raised Rs 2,210.7 crore through 12 QIP issues [all of which were on account of conversion of warrants issued on QIP basis into equity], according to latest data available with the market regulator SEBI [Securities and Exchange Board of India].

This was 16 per cent higher than Rs 1,898 crore garnered through 8 issues in July.

QIP is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.    
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