Realty cos raise over Rs 12,800 cr between Jan-Sept 2024 via QIPs: Report

17% of total funds raised through QIPs in 9 months of 2024 went to real estate firms. Renewable energy tops the list

Listed real estate companies have raised Rs 12,801 crore via Qualified Institutional Placements (QIPs) in the first nine months of 2024 as they turned to IPO and QIPs to fund their aggressive expansion amid strong post-pandemic demand, a report by real estate consultant ANAROCK said.

 

During the same period, QIPs of Rs 75,923 crore were issued across all sectors, with real estate comprising a 17 per cent share -- second highest after renewable energy.

 

Anuj Puri, chairman of ANAROCK Group, said that the strong QIP activity highlights the real estate sector’s crucial role in India’s broader capital markets -- and the institutional investors' growing confidence in Indian real estate.”

 

According to the report, robust housing sales growth after the pandemic prompted leading developers to unleash relevant inventory across markets. Over 1.362 million units have been launched across the top seven cities between January 2021 and September 2024.

 

Concurrently, these cities recorded housing sales of approximately 1.436 million units in the above-mentioned period.

 

“Effervescent sales led to an over 10 per cent decline in unsold housing inventory in this period, despite the high rate of supply addition,” the report added.

 

“To fund their aggressive expansion, these developers are turning to Initial Public Offerings (IPOs) and the QIP route,” said Puri.

 

The report suggested that the strong post-pandemic homebuyers’ demand also prompted developers to raise funds via IPOs to fund new project launches across geographies. Since 2021, six developers collectively raised Rs 5,275 crore through IPOs. 

 

The developers who raised funds via IPOs since 2021 till date are Macrotech Developers Ltd., Shriram Properties, Keystone, Signature Global, Suraj Estate, and Arkade Developers. Among these, Macrotech Developers raised the highest amount of about Rs 2,500 crore.