Indian two thousand rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Indian Companies Raise Over Rs 58,000 Crore Via QIP During April-January

Indian firms mobilised more than Rs 58,000 crore by issuing shares to institutional investors during the April-January period of the current financial year, over 12-fold rise from the year-ago period.

In comparison, they had mopped-up Rs 4,664 crore in the corresponding period of 2016-17.

The capital garnered by the listed companies through the Qualified Institutional Placement route stood at Rs 58,520 crore in the first 10 months of 2017-18, as per the latest data available with the Securities and Exchange Board of India.

It was also nearly seven times the total amount raised in the entire 2016-17, which stood at Rs 8,464 crore.

The funds have been mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

QIP is an alternative mode of resource raising available for listed companies to raise funds from domestic market.

In terms of numbers, 41 issues were witnessed during the April-January period of the current financial year as compared to 16 in the similar duration a year ago.