QIP fundraising reaches record high in India, real estate leads with Rs 22,320 cr in 2024

Mumbai: Fundraising through qualified institutional placements (QIPs) reached an all-time high in India in 2024, with 99 issues raising a massive Rs 1,41,482 crore across sectors, a report said on Thursday.

QIPs are a capital-raising method for listed companies without having to submit legal paperwork to market regulators.

Real estate emerged as a key contributor, with eight developers and one real estate investment trust (REIT) collectively raising Rs 22,320 crore. This accounted for 16 per cent of the total QIP fundraising for the year, according to the report by Anarock Group.

Compared to 2023, when only 43 QIP issues raised Rs 55,109 crore and real estate saw no activity in this space, 2024 marked a significant shift.

It saw the highest QIP fundraising year in the past 11 years, with real estate making a strong comeback as institutional investors showed confidence in the sector’s long-term growth.

“The analysis of the surge in QIP fundraising in 2024 highlights the real estate sector’s continued might amid strong institutional confidence in India’s economic fundamentals,” said Anuj Puri, Chairman, Anarock Group.

The surge in QIP activity came despite high volatility in the Indian stock market.

After hitting record highs in early 2024, both the Nifty and Sensex saw sharp corrections due to global geopolitical tensions and shifts in global monetary policies.

While retail investors reacted cautiously to market fluctuations, institutional investors continued to pour funds into sectors with long-term potential, particularly real estate.

“Despite market fluctuations, capital markets remain robust, and companies continue to attract strategic investments,” Puri added.

He added that the robust financial positioning supports the massive influx of upcoming real estate developments.

Earlier, the real estate developers raised Rs 12,801 crore via QIPs in the first nine months last year, which was over 17 per cent of the total QIP issuance across sectors at Rs 75,923 crore.

–IANS