Fundraising via QIPs gain traction as India Inc looks for growth capital

Supportive markets, robust growth outlook ensure adequate demand for new paper supply

Equity fundraising through qualified institutional placements (QIPs) has gained traction, thanks to supportive equity markets and the need for fresh fundraising to meet capital expenditure (capex) requirements.

So far this year, 12 companies have raised Rs 10,655 crore through this route, involving the issuance of fresh shares to a handful of institutional investors at a price slightly below the prevailing market rate.

Several more deals are on the anvil, with companies sitting on board or having in-principle approvals to raise more than Rs 30,000 crore, say industry players.

“When the economy is growing at a certain level, companies need capital