QIP charm in FY23: 20 firms raise ₹18,400 crore in first half of FY24, showcase four-fold increase within a year
₹18,400 crore. The amount was four times more than the amount of fund raised in the same duration a year-ago. In the first-half of current financial year, 20 companies collected ₹18,443 crore through QIPs.
The amount was way higher than ₹4,022 crore raised in the same period last year, reported PTI referring to prime database.com. The increase in fundraising via QIP indicates an improvement in investors sentiments. The trend in fundraising via QIP is expected to persist throughout the second half of the year too, Sanjay Moorjani, Research Analyst at SAMCO Securities, told PTI.
Prashant Rao, Director and Head of Equity Capital Markets, Anand Rathi Investment Banking, said that market and investor sentiments play an important role for these issuance. Till the time market sentiments are positive and investors are earning returns, listed companies would prefer to raise funds through QIP which allows them to have faster access to funds. "We believe the second half of this year also to be positive for QIP issuances," he added.
Till now, Union Bank raised largest fund via QIP this year. The state-owned bank mopped up ₹5,000 crore, accounting for 27 per cent of the total QIP amount. The bank raised the amount to augment its capital base.
QIP of a REIT of Brookfield India Real Estate Trust garnered ₹2,305 crore during the period under review. The QIP issuance mainly included financial services and power generation companies. Companies of these two sectors accounted for 70 per cent or ₹12,890 crore of the overall amount.
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