Fund mop-up via QIP plunges 78% to Rs 2,818 crore in H1FY17

Fund raising by listed companies from institutional investors plunged by 78% to Rs 2,818 crore in the first six months of the current fiscal. The funds have been raised for expansion, refinancing of debt and to meet working capital requirements.

According to the data available with the Securities and Exchange Board of India (Sebi), Indian firms garnered Rs 2,818 crore via qualified institutional placement (QIP) route during April-September 2016-17, lower than Rs 12,658 crore mopped-up in the same period of 2015-16.

In terms of numbers, nine issues were witnessed during the period under review against 18 in the first half of last fiscal.

In the entire 2015-16, about Rs 14,588 crore was mopped up through 24 issues, as per the Sebi data. Prior to that in the entire 2014-15, a total of Rs 29,102 crore was mopped up through 51 issues.

QIP is an alternative mode of resource raising available for listed companies to raise funds from domestic market.

In a QIP, a listed entity issues equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.

In September 2016, firms raked in Rs 2,210 crore through the QIP route, while Rs 230 crore was mobilised in August, Rs 56 in July, Rs 61 crore in June and Rs 262 crore in May. No QIP was witnessed in April.