Fundraising through Qualified Institutional Placements (QIPs) has surged to unprecedented levels in 2024, with Indian companies raising a record-breaking Rs 1,21,321 crore by November, according to Prime Database. This marks the first time in history that QIP fundraising has crossed the Rs 1 lakh crore threshold in a single calendar year. The total amount raised in 2024 more than doubled compared to the previous year’s Rs 52,350 crore, reflecting the strong performance of the stock market and higher valuations.
Key companies that capitalized on favorable market conditions include Adani Energy Solutions, which raised Rs 8,373 crore, and Varun Beverages, with Rs 7,500 crore. Other notable fundraisers in 2024 include Samvardhana Motherson International (Rs 6,438 crore), Godrej Properties (Rs 6,000 crore), and KEI Industries (Rs 2,000 crore). State-owned entities like Punjab National Bank, JSW Energy, and Prestige Estates Projects also participated in QIPs to strengthen their financial positions.
JM Financial emerged as the leading lead manager for QIP transactions, handling 16 issues. The company’s Managing Director, Chirag Negandhi, attributed the success to the strong market conditions and high valuations, which allowed promoters to leverage upward trends in the secondary market to raise funds. He emphasized that the company’s strong distribution capabilities and expertise in complex transactions played a significant role in the high success rate of QIP fundraises.
Pranjal Srivastava, Partner-Investment Banking at Centrum Capital, echoed these sentiments, describing 2024 as a landmark year for public market fundraising, including IPOs, QIPs, and block deals. He noted that the strong secondary market, abundant domestic liquidity, and positive investor sentiment provided the ideal environment for companies to secure capital through QIPs, with all issues being well-subscribed.
The surge in QIP fundraising is attributed to the robust stock market performance, which often drives growth in both the IPO and QIP sectors. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed that a booming secondary market leads to higher interest and participation in capital markets, thus facilitating substantial capital mobilization.
The resurgence of QIPs in 2024 contrasts sharply with 2022, when the QIP market hit a low point due to market volatility and high valuations. In 2022, only Rs 11,743 crore was raised through 14 QIP issues, the lowest in eight years. However, the strong market conditions in 2024 have reinvigorated investor confidence and facilitated this record-breaking fundraising year.
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