During the first half of financial year 2023-24 (H1FY24), Indian companies raised 4.6 times more capital through the qualified institutional placement (QIP) channel compared to the same period the previous year. According to Prime Database, a leading primary market data tracker, 20 firms garnered a combined Rs 18,443 crore through QIPs, a significant leap from Rs 4,022 crore in H1FY23. The most substantial QIP offering came from state-owned Union Bank, which amassed Rs 5,000 crore to bolster its capital foundation.
The report by Prime Database highlighted, “Financial services and power generation sectors dominated QIP issuance, together accounting for 70 per cent, or Rs 12,890 crore, of the total raised. Additionally, Brookfield India Real Estate Trust contributed with a QIP of Rs 2,305 crore.”
Equity issuance in the first half reached Rs 73,747 crore, marking a 69 per cent increase year-on-year. Fresh capital raised through equity constituted nearly 56 per cent (Rs 41,485 crore) of the total equity offering, indicating strong capital formation. In comparison, the previous year’s fresh issuance made up only 35 per cent of total equity releases. Initial Public Offerings (IPOs) contributed Rs 29,032 crore in the first half, with approximately Rs 12,979 crore being fresh capital issuance, the highest in seven years.
The small and medium enterprises (SMEs) segment also witnessed significant equity issuance activity. Roughly 97 SME IPOs collected Rs 2,731 crore, a 2.4-fold increase from Rs 1,137 crore raised by 63 SME IPOs the previous year. Pranav Haldea, Managing Director of the PRIME Database Group, remains optimistic about the coming months. He stated that 28 firms, aiming to raise Rs 38,000 crore, currently have Sebi approval. Another 41 companies, targeting approximately Rs 44,000 crore, await Sebi’s nod. “Despite the existing market volatility, the upcoming 4-5 months could see several IPO launches, possibly pausing due to the impending general elections,” he added.