Speed up fundraising through QIP
Mumbai, Ta. November 12, 2019, Tuesday
Through the Qualified Institutional Placement (QIP), the fundraising rate is catching up in the current calendar year and in view of the equity market boom, a total of nine companies have raised Rs 5 crore through private placement till November 1st. This amount is 5% more than last year. This is the second largest figure in the amount raised through this root in the last five years.
In the last two months, the four companies have raised Rs 1 crore through this route. In the calendar year 1, 3 companies raised Rs 5 crore through this route. In the year 2009, two companies raised Rs 5 crore, a research firm's data shows.
QIP is a way to raise capital through which listed companies can sell their shares to qualified institutional buyers. Financial sector companies have shown more interest in fundraising in the current calendar year.
Considering the prevailing liquidity crisis in the country, the financial sector companies are currently raising funds to finance the business industry. In addition, some other companies are raising money to pay off their debts, according to a report.
In the current calendar year, 3 companies have announced a raise of Rs 5.5 trillion through QIP. These include SBI, Indian Bank, ICICI Bank, etc.
With the improvement in stock market conditions, the number of payments is expected to increase steadily, the report said. If measures to solve the economic downturn in the country are successful, then raising funds through QIP in calendar year 8 may be seen.
Comments
Post a Comment