Fund raising via qualified institutional placement surges to over Rs 26,000 crore in 2014

NEW DELHI: Fund raising through the qualified institutional placement ( QIP) seems to be gaining traction among Indian firms, with total amount mopped-up via this route crossing the Rs 26,000 crore mark this year.

Indian companies have raised a total of Rs 26,354 crore in the first eight months of the year, more than double the amount garnered in the entire 2013, as per data compiled by capital market regulator Sebi.

During January-August period of 2014, funds were garnered through as many as 21 QIP issuance.

According to industry estimates, the total funds raised this year could be more than Rs 30,000 crore.

Market experts said that return of investor confidence in the equity markets has encouraged some of the large firms to mop-up funds through QIP route.

Interestingly, most of the funds were raked in through QIP issuances after the election verdict was announced in May, thus clearly showcasing the revival of investor sentiment, backed by a strong secondary market, experts say.

Among the firms which garnered funds via QIP segment this year included State Bank of India (SBI), Yes Bank, Idea Cellular and Reliance Communications.

The fund raising was in line with the BSE's benchmark Sensex gaining around 24 per cent so far this year.