QIP fund raising plunges 67%

Indian companies raised around Rs 4,300 crore through issuance of shares to investors during the period of April to November in the current fiscal, down by 67 per cent in comparison to the same period last year.

The funds raised have been utilised for the expansion of business, refinancing of debt, working capital requirements and other corporate purposes. Qualified institutional placement (QIP) is an alternative mode available to listed companies for the purpose of raising funds from the domestic market. 

Through QIP, a listed entity issues equity shares, convertible debentures, or other securities that are convertible to equity shares for institutional investors. As per the latest data available with the Securities and Exchange Board of India (SEBI), funds raised by the listed firms through QIP stood at Rs 4,318 crore during April to November in the current fiscal (FY2016-17). 

In comparison, firms had mopped up Rs 13,067 crore during the period of April-November of the last fiscal (FY2015-16). Around twelve issues were witnessed in the first eight months of the current fiscal as compared to 19 during the same period of the previous financial year. In 2015-16, total funds raked in by listed companies through QIP stood at Rs 14,588 crore.