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Companies garner close to $3B through institutional placement during Apr-Aug 2014

By PTI

  • 03 Sep 2014

Indian companies have mopped-up close to Rs 17,000 crore through institutional placement in the first four months of the 2014-15 fiscal, primarily to support working capital needs.

The figure is already much higher than Rs 13,663 crore that was raised through the Qualified institutional placements (QIPs) route in the entire 2013-14.

Many more firms have lined-up plans to raise capital through QIP in the current fiscal.

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According to the latest information available with the stock exchanges, companies have raised Rs 16,848 crore from 14 QIP issues during the April-July period.

This includes a staggering Rs 9,690 crore raised through 8 QIPs in July, and Rs 6,342 crore garnered via three issues in June. Besides, firms had mopped-up Rs 816 crore in May and there was no fund raising in April.

Most of the firms have raked in funds to meet working capital requirements and expansion plans.

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Interestingly, most of the fund raising through QIP route have taken place after the General election verdict was announced in mid-May, indicating the revival of investor sentiment backed by a strong secondary market.

Moreover, companies are opting QIP route as the IPO (initial public offer) market has not revved up yet.

The robust fund-raising is in line with the BSE's benchmark index, Sensex climbing by more than 15 per cent during the period under review (April-July).

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