Funds via QIP route surge to Rs 24,452 cr in 9 months from April

Firms had mopped up Rs 5,483 crore through Qualified Institutional Placement (QIP) route, during April-December period of previous fiscal, 2013-14.

Funds via QIP route surge to Rs 24,452 cr in 9 months from April

Mumbai: Fund-raising by Indian companies through issue of shares to institutional investors surged over 4-fold to Rs 24,452 crore in the first nine months of the current financial year.

Firms had mopped up Rs 5,483 crore through Qualified Institutional Placement (QIP) route, during April-December period of previous fiscal, 2013-14.

"The cumulative amount mobilised through QIP route during 2014-15, as on December 31, 2014, stood at Rs 24,452 crore through 40 issues," Securities and Exchange Board of India said in its latest report.

The funds mobilised by companies through QIP issues rose to Rs 2,559 crore in December from Rs 491 crore in the preceding month. December represented the third highest level of fund raising via QIP for a month.

During the first nine months of 2014-15, the highest fund mobilisation was seen in July (Rs 9,690 crore), followed by June (Rs 6,342 crore).

November saw the lowest amount (Rs 491) garnered through institutional investors. April saw no QIP issues.

According to market experts, QIPs emerged as the most preferred way to garner capital for their business needs last year.

Investor confidence in equities and revival in the stock markets has helped firms to mop-up funds through QIP route, experts said.

In the equity market, fresh capital is raised through QIPs, Offers for Sale, Initial Public Offers, Follow-on Public Offers and Institutional Placement Programme.

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