Record QIP Fundraising in India: Real Estate Tops with ₹22,320 Crore in 2024
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Synopsis
In 2024, India witnessed unprecedented fundraising through qualified institutional placements (QIPs), totaling ₹1,41,482 crore across 99 issues. The real estate sector played a pivotal role, raising ₹22,320 crore, marking a significant recovery from the previous year. Institutional investors displayed strong confidence in the market despite overall stock volatility.
Key Takeaways
- Record QIP fundraising of ₹1,41,482 crore in 2024.
- Real estate sector raised ₹22,320 crore, 16% of total.
- Significant improvement from 2023's ₹55,109 crore.
- Strong institutional confidence in India's economy.
- Capital markets remain robust despite market fluctuations.
Mumbai, Feb 13 (NationPress) Fundraising through qualified institutional placements (QIPs) hit a historic peak in India in 2024, with 99 issues generating an astonishing ₹1,41,482 crore across various sectors, as reported on Thursday.
QIPs serve as a method for listed companies to raise capital without the need to file extensive legal documentation with market regulators.
The real estate sector emerged as a major player, with eight developers and one real estate investment trust (REIT) together securing ₹22,320 crore. This represented 16 percent of the total QIP fundraising for the year, according to a report from Anarock Group.
In contrast, 2023 saw only 43 QIP issues raising ₹55,109 crore, with no real estate activity recorded, making 2024 a remarkable turnaround.
This year marked the highest QIP fundraising in the past 11 years, showcasing a strong resurgence in real estate as institutional investors exhibited confidence in the sector's long-term growth potential.
"The evaluation of the increase in QIP fundraising for 2024 emphasizes the real estate sector's enduring strength amid robust institutional confidence in India's economic fundamentals," stated Anuj Puri, Chairman of Anarock Group.
The uptick in QIP activities occurred despite significant fluctuations in the Indian stock market.
After reaching record highs in early 2024, both the Nifty and Sensex experienced sharp corrections due to global geopolitical uncertainties and changes in international monetary policies.
While retail investors responded cautiously to market volatility, institutional investors continued to invest heavily in sectors with long-term growth prospects, particularly real estate.
“Despite market fluctuations, capital markets remain resilient, and companies continue to secure strategic investments,” Puri noted.
He further explained that the solid financial footing supports the substantial influx of forthcoming real estate projects.
Previously, real estate developers had raised ₹12,801 crore through QIPs in the first nine months of last year, constituting more than 17 percent of the total QIP issuance across all sectors, which stood at ₹75,923 crore.
