India Inc raises Rs 17,000 crore via QIPs in Jan-July

India Inc raised a staggering over Rs 17,000 crore through institutional placements for their business expansion plans, refinancing of debt and to meet working capital needs.
Moreover, many companies have lined up their plans to raise fund through Qualified Institutional Placement (QIP) route.
This comes on top of Rs 31,684 crore that was raised by various listed firms by issuance of shares to institutional investors in the entire 2014.
According to an analysis of data available with Sebi, firms have mopped up Rs 17,124 crore through 25 issuance during the January-July period in 2015.
Most of the funds raised through QIPs were for expansion plans, refinancing of debt and to support working capital requirements.

QIP is a capital-raising tool, whereby a listed firm can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer.
According to the data, there was a large gap between the capital raised through QIPs and funds garnered via other routes like IPO.
A total of Rs 11,500 crore was raked up through rights issue, while over Rs 5,000 crore was mopped up via initial public offerings (IPOs) so far in 2015.