QIP rush: 10 companies launch issues in December

QIPs, after two muted years, have shown signs of revival, with capital raised via 41 QIPs reaching a new high of Rs 56,800 crore (12 times higher than CY16) thus far in calendar year 2017 (CY17)

There is a rush to tap funds from qualified institutional placement (QIP) route with 10 companies, including banks, have launched QIP issues in December thus far, the highest in past seven years in terms of number of issues.

Total eight companies that include Punjab National Bank (PNB), Mahindra & Mahindra (M&M) Financial Services, Natco Pharma and Union Bank of India have already raised Rs 11,037 crore via QIPs in the current month.

Most of these companies intend to use the proceeds primarily for repayment or pre-payment of outstanding indebtedness and towards capital expenditure. The financials proposed to use funds for augment their