Fund mop-up via QIP route down 54% in April-August

Funds raising by listed companies from institutional investors has fallen to Rs 8,320 crore during the April-August period of the current fiscal, a slump of 54 per cent from year-ago period.

The funds have been raised for expansion, refinancing of debt and to meet working capital requirements. However, market analysts feel that fund raising through QIP mode is expected to move upward as many firms have lined-up their plans.

Most of the companies eyeing to mobilise fresh capital through this route are from the banking sector. Banks are raising funds to boost their capital adequacy for Basel-III norms, among other reasons. According to the data available with Sebi, companies mobilised a total of Rs 8,320 crore during April-August period of the current financial year.