Fund raising activity drops 86%

Fund raising activity via the QIP or qualified institutional placement route has dropped almost 86% on an annualised basis from $ 5.00 bn in 2007 to $ 0.53 bn in 2008 on a year-to-date comparison.

According to an NexGen Capital report, the number of QIPs have fallen to 4 in 2008 YTD from 29 in 2007. The guidelines for QIP came in May 2006 and the first QIP placement happened in Sept 2006. During Sept to Dec 2006, QIP volume was US$ 1.05 Bn.

The total volume raised through QIPs from 2006 to date aggregated to US$ 6.59 Bn. The current MTM value of the same has fallen to US$ 2.31 Bn, representing current MTM return of -65%.

The current MTM losses are seen across the industries. Real Estate being the biggest loser with -86 % and Engineering and construction being the second worst performer with -76%.

The companies such as Ansal, GMR, Phoenix Mills, Peninsula Land, Mahindra Lifespaces, Suzlon Energy are amongst the biggest losers in terms of current MTM Values.