According to a recent report, equity fundraising through qualified institutional placements (QIPs) has gained traction this year.
- It was due to supportive markets, robust fund flows from domestic and foreign institutional investors and the need for fresh fundraising by firms.
- So far, 23 companies have raised Rs 23,393 crore in 2024 through this route, almost half compared to the previous year.
- In 2023, 45 companies had raised Rs 52,350 crore through QIPs.
- A qualified institutional placement (QIP) is a way for listed companies to raise capital without having to submit legal paperwork to market regulators.
- The Securities and Exchange Board of India (SEBI) created the rule to avoid the dependence of companies on foreign capital resources.
- Qualified institutional buyers (QIBs) are the only entities allowed to purchase QIPs.
