QIP route sees heavy traffic of listed cos headed for raising fresh capital
raising fresh capital. In the first eight months of 2024, 55 companies raised ₹58,400 crore through QIPs, the second-highest ever after ₹80,800 crore in 2020. With several companies announcing plans to raise funds, QIPs are on track to break records in 2024.
The corporate sector is taking advantage of the vibrant equity markets to strengthen balance sheets and raise the required resources to fund expansion plans, said market participants.
Metal and mining giant Vedanta in July raised ₹8,500 crore through the QIP route mainly to de-leverage its balance sheet. The issue was subscribed more than three times, according to the bankers.
'Building War Chest for Growth'
Later in the same month, Adani Energy Solutions raised Rs 8,373 crore through QIPs to invest in transmission assets, smart metering, debt repayment and general corporate purposes.
«Indian corporates are building a war chest for growth, raising capital for both organic and inorganic expansion, and positioning themselves for a stronger competitive edge in the market,» said V Jayasankar, head of equity capital markets, Kotak Investment Banking.
On Tuesday, Bengaluru-based Brigade Enterprises launched a QIP to raise up to ₹1,500 crore. Another real estate company Prestige Estates Projects, also based in the southern city, last week raised ₹5,000 crore through QIPs.
«Favourable valuations, strong secondary markets, and ample liquidity have positioned QIPs as the go-to fundraising method for listed companies aiming to finance new projects, modernisation,
