$16 billion! Indian companies raise record-breaking funds in 2024 via QIPs

The year 2024 is panning out to be a milestone year for qualified institutional placements (QIP) as Indian corporations have secured an unprecedented $16 billion through them.

The offerings have remained robust despite the typical seasonal lull.

A QIP is a way for listed companies to raise capital through the sale of shares or other securities to large investors such as mutual funds and insurance firms with fewer regulatory filings.

Robust secondary market pushing the QIP funding surge

The record-breaking surge in funding via QIP has been driven by ease of access to “intelligent capital” and fueled by expensive equity valuation. Additionally, promoters have leveraged the boom in the secondary market to secure capital, several reports suggested.

As per reports, the unparalleled funding via QIPs was a direct result of a strong secondary market, since an upward trend in the secondary market translates to a boom in initial public offerings (IPOs) and QIPs.

Furthermore, a high level of domestic liquidity and an overall positive sentiment have provided a stimulating QIP environment for companies and ensured all QIPs were received well in terms of subscription, the reports further stated.

This has underlined the growing influence of domestic investors and retail participants in the capital market.

India’s 2024 IPO boom

The year 2024 has also been characterised by a record-breaking boom in India’s IPO landscape as over 300 companies raised almost $18 billion via public listings thus far.

A stable macroeconomic outlook, broad-based growth across industries, a rapidly expanding retail investor base and attractive valuations were the driving factors behind the IPO boom.