Mad rush for QIPs: Are companies building war chests for stressed assets?

Over 40 firms have announced plans to raise up to Rs 500 billion, roughly two-thirds the Rs 611 billion raised last calendar year

India Inc is making a beeline for qualified institutional placements (QIPs) to shore up capital, retire debt and build reserves for possible acquisitions of stressed assets. 

If the market does not play a spoilsport, more than 40 companies may raise between Rs 400 billion and Rs 500 billion through this mode before the financial year comes to a close. Last calendar, listed companies had raised Rs 600 billion through QIPs.

“Last year saw significant IPO (intial public offering) activity. This year may be dominated by follow-on offerings, including QIPs,” said Utpal Oza, head of investment banking at Nomura India. “Attractive