With a drop of 46%, India Inc's QIP issue stands at Rs 10 billion in May

Indian firms mobilised a little over Rs 10 billion through issuance of shares to institutional investors during May this year, witnessing a drop of 46 per cent over the previous month.

During April 2018, the firms had mopped up Rs 18.62 billion.

As per the latest data available with the Securities and Exchange Board of India (Sebi), the capital garnered by the listed companies through the qualified institutional placement (QIP) route stood at Rs 10.08 billion in May 2018.

This is 45.86 per cent less than that raised in April 2018.

The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

QIP is an alternative mode of resource mobilisation available for listed companies to raise funds from the domestic market.

In terms of numbers, five issues appeared in May this year as compared to three during the previous month.

The firms had raised Rs 672.57 billion via 53 issues through the QIP route during the financial year 2017-18.