Fundraising through qualified institutional placements #QIPs has reached an all-time high in 2024, surpassing the Rs 1 lakh crore mark for the first time ever in a calendar year. In 2024 till date, 82 companies have raised around Rs 1.23 lakh crore through QIPs to set a new benchmark.
Interestingly, it is almost on par with the quantum of funds raised through initial public offers (IPOs) this year as 76 firms have cumulatively raised 1.34 lakh crore through public issues.
More importantly, with a month to go in 2024, market participants believe that QIP fund raising this year could outpace the IPO collections as well. In 2023, 45 companies had raised approximately Rs 52,350 crore through QIPs, a significant leap compared to Rs 11,743 crore raised by 14 companies in 2022.
Among the largest QIPs in 2024, Vedanta and Zomato led the way, each raising Rs 8,500 crore. They were followed by Adani Energy Solutions and Varun Beverages, which raised Rs 8,373 crore and Rs 7,500 crore, respectively.
Other significant QIP transactions during CY24 included Samvardhana Motherson International at Rs 6,438 crore and Godrej Properties at Rs 6,000 crore. Additionally, JSW Energy, Prestige Estates Projects, and Punjab National Bank each raised around Rs 5,000 crore through QIPs.
While QIP and IPO fundraising trends indicate robust investor confidence in India Inc that is looking to deploy funds towards capital expenditures and acquisitions, experts advise a bit of caution as well.
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