Qualified Institutional Planning
2024 reached an all-time high in terms of fund raising through Qualified Institutional Placement (QIP). The amount raised through QIP crossed the Rs 1 lakh crore mark for the first time in a calendar year, driven by strong stock market conditions and high valuations. According to data compiled by Prime Database, Indian companies have raised Rs 1,21,321 crore through QIP till November. This is more than double the Rs 52,350 crore raised in the previous calendar year.
82 companies entered the money market by issuing QIP
Analysts said the sharp growth suggests that market strength has been a key factor driving this growth, as companies continue to raise capital through qualified institutional placements (QIPs). According to the data, till November this year, 82 companies have entered the capital market by issuing QIP, while only 35 companies had raised Rs 38,220 crore in the same period last year. QIP is one of the fastest products to raise funds from institutional investors. It is designed for listed companies and investment trusts, allowing them to quickly raise funds from institutional investors without the need to submit any pre-issue filings to market regulators. It was followed by Adani Energy Solutions and Varun Beverages, which raised Rs 8,373 crore and Rs 7,500 crore, respectively.
Samvardhan Motherson International raised Rs 6,438 crore
Other significant QIP transactions during 2024 include Rs 6,438 crore raised by Samvardhan Motherson International, Rs 6,000 crore raised by Godrej Properties and Rs 2,000 crore raised by KEI Industries. Besides, public sector banks Punjab National Bank, JSW Energy, Prestige Estates Projects were also among the companies that raised capital through the QIP route to strengthen their financial reserves. According to the Prime database, financial services company JM Financial emerged as the top lead manager for QIP transactions as it handled 16 issues.
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