Fund raising via institutions climbs to Rs 20K cr in H1 FY15

Fund raising via institutional investors seems to be gaining traction among Indian firms, with the total amount mopped-up through this route crossing Rs 2O,000 crore-mark in the first half of the current fiscal.

According to a report by Prime Database, companies have raised a total of Rs 20,589 crore through Qualified Institutional Placements (QIPs) and Institutional Placement Programme (IPP) routes during April-September period of the current fiscal (2014-15), higher than a meagre Rs 5,402 crore garnered in the year-ago period.

Of the total fund raised, a massive Rs 20,171 crore were raked in through QIPs and remaining Rs 418 crore via IPPs.

In the first six months of 2014-15, funds were garnered through as many as 20 issuance (19 QIPs and 1 IPP) as compared to 13 (3 QIPs and 10 IPPs) in the April-September period of the preceding fiscal.

According to industry estimates, the total funds raised this year could be more than Rs 30,000 crore.

"It is interesting to note that all QIP issuances in the first half of 2014-15 took place after the election verdict was announced on May 16, thus clearly showcasing the revival of investor sentiment, backed by a strong secondary market.

"There was a pent up demand for capital, which is now being released," Prime Database Managing Director Pranav Haldea said.

He further said, "The pipeline too is extremely robust, comprising issuers from the private sector as also several banks which have announced QIP plans to raise additional capital, all of which is likely to materialise in the near future."

The largest QIP was from Reliance Communications of Rs 4,808 crore while the largest and only IPP was of Muthoot Finance for Rs 418 crore made to comply with Sebi's guidelines on minimum public shareholding.