 "India Inc raises 4.6 times more capital via QIP in H1FY24, shows data")
India Inc mobilised 4.6 times more via the qualified institutional placement (QIP) route during the first half of the current financial year 2023-24 (H1FY24) compared to the same period in the last financial year.
According to data provided by PRIME Database, a primary data market tracker, 20 companies raised a cumulative Rs 18,443 crore by issuing new shares in QIPs compared to just Rs 4,022 crore in H1FY23. The largest QIP issuance was by state-owned Union Bank. It raised Rs 5,000 crore to augment its capital base. “QIP issuance was dominated by financial services and power generation companies. They accounted for 70 per cent (Rs 12,890 crore) of the overall amount. In addition, there was one QIP by Brookfield India Real Estate Trust of Rs 2,305 crore,” said a note by PRIME Database.
Total equity issuance during the first half stood at Rs 73,747 crore, up 69 per cent over same period last year. The fresh capital raised via equity nearly 56 per cent of the total equity issuance at Rs 41,485 crore — a sign of capital formation. Last year, fresh issuance accounted for only 35 per cent of the total equity issuances. About Rs 29,032 crore got raised by initial public offerings (IPOs) during the first half. Of this nearly half or Rs 12,979 crore was fresh capital issuance, most in seven years.
Equity issuance by small and medium enterprises (SMEs) also remained robust during the first half. About 97 SME IPOs mopped up Rs 2,731 crore, up 2.4 times over Rs 1,137 crore raised by 63 SME IPOs during the same period last year. Pranav Haldea, Managing Director, PRIME Database Group said the outlook for the second half also remains strong as 28 companies aiming to raise Rs 38,000 crore are presently holding Sebi approval while another 41 companies looking to raise about Rs 44,000 crore are awaiting Sebi approval.
“The next 4-5 months are likely to see several IPOs being launched before a pause on account of the general elections,” he said.