Firms mop up Rs 14,000 cr via QIP in Apr-Jan

Indian companies have raised Rs 14,000 crore via qualified institutional placements (QIPs) in the first 10 months of the current financial year, according to data available with the Securities and Exchange Board of India. The companies had raised Rs 29,102 crore in FY15. The funds have been raised for expansion, refinancing of debt, and to meet working capital requirements.

Experts attributed the slump in fund-raising to volatile equity markets. In terms of numbers, 23 issues were witnessed during the period under review, against 51 issues in FY15.

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The highest amount raised so far in the current fiscal was in July (Rs 4,824 crore) followed by September (Rs 4,338 crore), June (Rs 1,507 crore) and December (Rs 1,288 crore).

QIP is an alternative mode for listed companies to raise funds from domestic market.

In a QIP, a listed entity issues equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.