Mumbai: The past three months between August and October have not seen a single company raising money through qualified institutional placement (QIP). The number of companies opting for fund raising through QIP route has also dropped 83.29% between April and October this year over the same period last fiscal, due to volatile market conditions, with only nine firms raising a total of around Rs 5,596.14 crore in the past seven months.

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Shares prices of eight of these nine companies are also currently trading significantly below their QIP issue price.

In the last three months between August and October, not a single listed company has tapped the QIP route, according to data available with market-tracker Prime Database. Last time this happened was in 2016, when no issue came out in March and April. A similar sentiment was witnessed in 2013-14, the year before the 2014 general elections, when only six companies raised Rs 9,402 crore cumulatively through QIP, according to the database.

Last fiscal, around 51 companies had raised Rs 57,523.76 crore through QIPs, with 20 companies raising around Rs 33,501.83 crore between April and October, 2017. Pranav Haldea, managing director, Prime Database Group, said QIP is a “bull market product”.

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 QIPs drop to a trickle this year