QIPs Raise 69 PC Higher Funds in 9M 2024 Than 2023

Chennai: Renewable energy and real estate are the largest contributors to Qualified Institutional Placements (QIP) of over Rs 75,000 crore in the first nine months of 2024, which is 69 per cent higher than the funds raised in CY2023.

Between January and September 2024, Qualified Institutional Placements (QIP) issuance across all sectors stood at Rs 75,923 crore. The total QIP issuance across sectors in entire CY 2023 was Rs 52,350 crore and in 9 months, 2024 has already crossed the levels.

Renewable energy raised the highest chunk of funds at Rs 14425.37 crore through QIPs, contributing 19 per cent of the total placements. In a recent QIP issued in August 2023, Suzlon Energy successfully raised Rs 2000 crore. Further, Indian Renewable Energy Development Agency Limited (IREDA) has received approval for raising approximately Rs 4500 crore through QIP.

The real estate sector contributed over 17 per cent of QIP issuance across sectors, or Rs 12,801 crore. According to Anarock Group, in 2023 no real estate developer raised funds via the QIP route.

"After renewable energy, real estate comes in second highest among sectors to raise funds through QIP so far this year," said Anuj Puri, Chairman, Anarock Group. "This strong QIP activity highlights the sector’s crucial role in India’s broader capital markets - and the institutional investors' growing confidence in Indian real estate."

Metal companies made up for 15 per cent of the total placements, while the automotive and transport sector raised 10 per cent. Mining major Vedanta raised Rs 8500 crore through QIP this year.