QIP Fundraising at lowest in 6 years in 2022

12 Dec 2022 , 01:16 PM

As per the reports of Economic times, fundraising via Qualified Institutional Placement (QIP) has fallen sharply after almost 6 years due to number of factors. As per data, till November of current calendar year only 13 companies cumulatively raised Rs 8,196 crore via QIPs, India Inc’s quickest and most preferred fundraising route.

As per the data from primary market tracker Prime Database, in 2021, 35 companies raised ₹41,997 crore, and in 2020, 25 companies garnered about ₹80,816 crore through QIPs.

As per experts’ views, sharp volatility in the stock market, high valuations, strong balance sheets in some sectors and consistence selling by FPIs have been keeping the companies away from fundraising. In 2022, FPIs have sold shares worth ₹1.29 lakh crore so far.

Some of the top fundraisers in 2022 through QIPs are Macrotech Developers, Tata Group’s Indian Hotel and AU Small Finance Bank.