Everyone must have heard about SIP or SWP. But have you ever heard about QIP? In today’s article we are going to discuss it. The amount raised through Qualified Institutional Placement (QIP) has reached an all-time high in 2024. The amount raised through QIP has crossed the one lakh crore rupee mark for the first time in a calendar year, driven by a strong stock market and high valuations. According to data compiled by Prime Database, Indian companies have raised 1,21,321 crore rupees through QIP by November. This is more than double the 52,350 crore rupees raised in the previous calendar year.
82 companies enter money market by issuing QIP
Analysts said the sharp growth shows that market strength has been a major factor driving this growth, as companies will continue to raise capital through qualified institutional placements (QIP). As per the data, 82 companies have entered the capital market by issuing QIPs till November this year, compared to only 35 companies raising Rs 38,220 crore in the same period last year.
What is QIP?
QIP is one of the quickest 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.
Other important QIP transactions during 2024 included Samvardhan Motherson International raising Rs 6,438 crore, Godrej Properties raising Rs 6,000 crore and KEI Industries raising Rs 2,000 crore. Besides, public sector lenders 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 Prime Database, financial services company JM Financial emerged as the top lead manager for QIP transactions, as it handled 16 issuances.
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