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In search of Covid capital, companies raised Rs 1.7 trillion in 2020

Of this, Rs 1.44 trillion was raised through QIPs and rights issues

Photo: Bloomberg
In the new phase of fundraising, known as “Covid Capital”, companies raised money through QIPs and rights to shore up their balance sheet and for consolidation began | Photo: Bloomberg

Despite turbulence, the equity capital market (ECM) activity in 2020 was the best in a decade, driven by follow-on transactions. Funds raised through initial public offerings (IPOs) and follow-on transactions, such as qualified institutional placements (QIPs) and rights issues, totalled Rs 1.7 trillion in 2020 — most in 10 years. Of this, Rs 1.44 trillion was raised through QIPs and rights issues. Though fundraising activity almost came to a standstill for a month after the Covid outbreak, it gathered momentum from May onwards. In the new phase of fundraising, known as ...