look news india
Ahmedabad: Through Qualified Institutional Placement (QIP) in 2024, companies will invest Rs. A collection of Rs 1.13 lakh crore has been done. This is the highest amount till date. According to statistics, 80 companies have raised this fund this year, which is three times more than in 2023.
During the same period in 2023, 35 companies raised only Rs 38,220 crore. The previous record was in 2020, when 25 companies received Rs. 80,816 crores were collected.
Market analysts said 2024 was a good year for the secondary market and promoters took advantage of this positive year to raise funds. Promoters used substantial liquidity to raise funds for future plans.
So far in November 2024, companies have received a total of Rs 2,000 crore through QIP. Rs 25,000 crore has been raised. This amount is the second largest amount collected in a single month.
By October 2024, 77 companies have invested Rs. 96,321 crores were collected. Through QIP in August 2020, Rs. Rs 39,032 crore was raised, the highest ever in a single month.
Most of the money raised through QIP in 2024 is being used by companies to repay loans or repay them ahead of schedule. Apart from this, companies are also using this fund for capital expenditure and general corporate expenses.
QIP is a bull market product. When the market is bullish and valuations are high, it creates a golden opportunity for companies to raise equity.
From July 2024, 42 companies will receive a total of Rs. 72,293 crore, which is 69% of the total fund this year. During this period, the Sensex has hovered around 79,000, down 8% from its record high of 85,978.25 on September 27.
The prospects for funding through QIP in 2025 will largely depend on the performance of the secondary market. If the markets remain strong then the path to QIP funding will remain open for companies.
