India Inc's secondary share sales hit record, firms raise $16 billion in 2024

Indian companies have raised a record-breaking $16 billion via share sales to large investors in 2024, with offerings remaining robust despite the typical seasonal lull.

The beeline to raise funds is so strong that three firms, including condom maker Mankind Pharma Ltd. and e-waste recycler Gravita India Ltd. launched secondary sales to raise over $400 million on Monday, according to data compiled by Bloomberg.

A so-called qualified institutional placement, or QIP, allows companies to raise funds from large investors like mutual funds and insurance firms with fewer regulator filings.

“It’s an easy access to intelligent capital,” said Neha Agarwal, head of equity capital markets at JM Financial Ltd. The surge has been fueled by expensive equity valuations, which remain largely intact despite the recent selloff, she said, adding that firms are using the funds to repay debt and to meet capital expenditure.

India has also emerged as one of the busiest venues globally for first-time share sales this year. Over 300 companies have raised almost $18 billion from public listings so far in 2024, thanks to robust demand from retail investors and global funds.