AK Capital plans to raise Rs 400 cr through QIP

MUMBAI: AK Capital Services Ltd (AK Capital), plans to raise Rs 400-crore through a Qualified Institutional Placement ( QIP), a top company official said.

"We plan to raise Rs 400-crore through a Qualified Institutional Placement (QIP),subject to regulatory approvals. The QIP is aimed to fund both the organic and inorganic growth of the company," AK Capital's Managing Director & CEO, A K Mittal, told reporters here today.

Reaping the benefits of the encouraging market opportunities, the company wishes to capitalise the growth prospects through NBFC and wealth management services for its clients, Mittal said.

The RBI credit policy, new policies introduced by the regulator and most importantly the rising investor interest in the bond market are all inclined towards strengthening the bond market scenario in India. Compared to FY 09, the bond market observed a growth of 25 per cent in FY 10.

This financial year, the bond market is expected to grow by nearly 100 per cent and the aggregate volume of bond issues in the current financial year could be around Rs 3,50,000-crore, Mittal said.

Thus, the company's Board has decided to raise funds through a QIP that would facilitate organic and inorganic growth of the company, he said.