Fund raising through QIP declines 53%

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SummaryDuring September 2012, listed issuers raised Rs 1,034 crore through six QIP issues, says Sebi.

Fund-raising by Indian companies through issue of shares to institutional investors declined by 53 per cent to Rs 1,034 crore in September over the previous month.

According to the Sebi data, companies raised Rs 1,034 crore through the Qualified Institutional Placement route in September, against Rs 2,211 crore mopped up in August.

“During September 2012, listed issuers raised Rs 1,034 crore through six QIP issues (includes one issue worth Rs 570.3 crore of Institutional Placement Programme),” Sebi said.

Market experts said fund-raising through QIPs has slowed down in the past couple of months due to volatile market conditions globally.

“Most investors were reluctant to participate in QIPs since shares of many companies that made placements to institutional investors were trading below the issue price. Now, we are witnessing a renewed interest from investors, though a lot would depend on valuations,” an expert said.

The companies have raised Rs 5,685.5 crore through the QIP in April-September this year.

Eight listed companies raised a total of Rs 1,898 crore in July, while three companies raised Rs 517.6 crore in June. In May, only Rs 60 lakh were raised by two companies, while Rs 24.7 crore was raised through two QIP issues in April.

In the previous fiscal, Rs 2,163 crore was raised by companies through QIP.

QIP is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.

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