Millennium Post

Fund-raising via QIP up 137% in Jan-Oct period

Fund-raising via QIP up 137% in Jan-Oct period
Indian firms have garnered about Rs 30,000 crore through the Qualified Institutional Placement (QIP) route in the first ten months of this year, much higher than Rs 12,634 crore raked up in the entire
2013.

Moreover, market experts believe that the fund raising through this route is likely to go up further as
many companies have lined up with their plans.

According to latest update available with the market regulator Sebi, companies have mopped up Rs 29,582 crore through 33 QIP issues during January-October period of 2014.

There was a large gap between the capital raised through QIPs and funds garnered via other routes.
A total of Rs 4,733 crore was raked up through rights issue, while Rs 1,522 crore mopped up via initial public offerings (IPOs) during January-October period of the year.

Market experts said that return of investor confidence in the equity markets has encouraged some of the large firms to mop up funds through the QIP route.

Interestingly, most of the funds were raised through QIP issuances after the election verdict was announced in May, thus clearly showcasing the revival of investor sentiment, backed by a strong secondary market, experts said.

Among the firms which garnered funds via QIP segment this year included SBI, Yes Bank, Idea Cellular and Reliance Communications.

Most of the funds were raised for expansion purpose and to support working capital requirements.
PTI

PTI

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