NEW DELHI: Fundraising by way of certified institutional placements (QIPs) reached an all-time high in 2024, exceeding the Rs 1 lakh crore mark for the primary time. This milestone, fueled by robust inventory market situations and better valuations, noticed Indian companies elevate Rs 1,21,321 crore via QIPs by November, as per knowledge from the Prime Database.
This marks a rise of over two occasions in comparison with the Rs 52,350 crore raised within the earlier calendar 12 months. Analysts highlighted that this progress highlights market resilience as a key driver, with companies anticipated to proceed elevating capital by way of QIPs.
The knowledge additionally revealed that 82 companies had accessed capital markets by way of QIP points by November this 12 months, in comparison with simply 35 companies that raised Rs 38,220 crore throughout the identical interval final 12 months.
QIP is a quick-monitor technique for listed companies and funding trusts to boost funds from institutional traders. It permits them to safe capital swiftly with out the requirement of pre-situation filings to market regulators.
Key gamers on this record-breaking 12 months embody the Vedanta group and meals supply big Zomato, each elevating Rs 8,500 crore every by way of QIPs. They have been intently adopted by Adani Energy Solutions and Varun Beverages, which raised Rs 8,373 crore and Rs 7,500 crore, respectively.
The knowledge additionally acknowledged that JM Financial, a monetary companies firm, emerged because the main supervisor for QIP transactions, overseeing 16 points.
Chirag Negandhi, managing director at JM Financial Ltd informed information company PTI, “In 2024, promoters have taken advantage of strong market conditions, leveraging higher valuations and upward trends in the secondary market to raise funds. Our performance reflects our superior distribution capabilities and our ability to handle complex transactions and achieve results for our clients.”
Pranjal Srivastava, associate-funding banking at Centrum Capital, additionally resonated with the identical views, “CY 2024 has been a landmark year for all forms of public market fundraise, be it IPO, QIPs, or blocks. Listed companies raised record levels of funds. through QIPs to meet their funding requirements”.
Srivastava acknowledged that the robust secondary markets, ample home liquidity, and general optimistic sentiment created a perfect atmosphere for companies to boost funds, guaranteeing that each one QIPs acquired robust subscription ranges.
“The record-breaking fund mobilization by companies through QIP is the direct consequence of a booming stock market. Experience tells us that a booming secondary market leads to a booming IPO and QIP market,” VK Vijayakumar, chief funding strategist at Geojit Financial Services, stated.
The QIP route made a outstanding comeback in CY23, following a decline in 2022, the bottom in eight years when solely Rs 11,743.29 crore was raised by way of 14 points as a consequence of inventory market volatility, high valuations, and different elements.
The QIP surge this 12 months displays the robust influx from retail and home traders. Given the Indian inventory market’s resilience over the previous 4 years and ongoing institutional demand for high quality points, promoters are taking benefit of the favorable market situations, Vijayakumar stated.
With Torrent Power, Bharat Forge, Senco Gold, and Sammaan Capital’s QIP fundraising price greater than Rs 8,000 crore in December, analysts anticipate India Inc to go up additional by the tip of the calendar 12 months, cementing 2024 as a milestone 12 months for QIPs in India. .
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