North India Statesman
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Mumbai: In the first six months of the current financial year, companies raised Rs 1.33 trillion through eligible institutional placements (QIP) in the first six months of the current financial year. The amount raised through QIP in the current financial year ending 2024-25 is the highest ever in the history of India’s capital market.
The new financial year is expected to raise more funds through the initial public offer (IPO) and QIP.
A report said that companies have raised 87 per cent more funds through QIP in the current financial year, while the figure will be Rs 71,306 crore in FY 2024.
Companies adopted a strategy to raise more money through QIP to start expansion programs and strengthen the balance sheet. According to the data received, this year 85 companies have raised funds through QIP, compared to 64 companies last year.
The report states that the amount raised through QIP in the current financial year is the highest ever in terms of value and quantity.
Taking advantage of the boom in the capital market in the first six months of the current financial year, companies strengthened their balance sheet by raising important funds from the market.
QIP is a quick and easy way to raise funds from institutional investors for companies. The companies that raised funds mainly included auto, real estate, metal and public sector banks.
In the next financial year also, the amount raised by companies is expected to continue to increase. It is estimated that in FY 2025-26, more than Rs 3 lakh crore will be raised through IPO and QIP.
