QIP fundraising surpasses ₹1 trillion in 2024, marking a historic milestone for Indian capital markets. The total funds raised through qualified institutional placements (QIPs) reached ₹1.21 lakh crore by November, more than doubling the ₹52,350 crore raised in 2023. Robust market conditions and higher valuations significantly contributed to this surge.
A record-breaking year for QIP fundraising
A total of 82 companies utilized the QIP route to raise capital in 2024, compared to just 35 firms in the same period last year. Major players like Vedanta Group and Zomato led the charge, each raising ₹8,500 crore. Other notable contributors include Adani Energy Solutions (₹8,373 crore), Varun Beverages (₹7,500 crore), and Godrej Properties (₹6,000 crore).
Why QIP fundraising surpasses records
QIPs have emerged as a preferred fundraising option for listed companies, offering a fast and efficient way to mobilize capital. Strong secondary markets, increased domestic liquidity, and growing retail investor participation have created a favorable environment for QIPs. Analysts attribute this record-breaking year to promoters leveraging strong market conditions and higher valuations to secure funds for expansion and debt reduction.
Industry experts highlight market resilience
Industry leaders emphasize the role of robust investor demand in this year’s QIP success. “A booming secondary market inevitably leads to thriving IPO and QIP activity,” noted V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. JM Financial emerged as the top lead manager, handling 16 QIP transactions.
QIP fundraising outlook for 2024
With December contributions from companies like Torrent Power and Bharat Forge expected to add over ₹8,000 crore, the 2024 calendar year is set to close on a strong note. Analysts predict this momentum will further solidify QIPs as a key driver of capital markets in India.
JSW Energy, Punjab National Bank, and Prestige Estates are among the companies capitalizing on this thriving QIP market, reinforcing their financial strategies while contributing to a record-breaking year for fundraising.
