Ninety-one companies have raised ₹1.29 lakh crore from qualified institutional placements (QIPs) this year, a record for any calendar year. This is 2.5 times the amount raised in CY23 and 1.6x the amount raised in CY20, the previous best mop-up.
The top 10 companies have contributed roughly half of the total QIP amount raised this year, according to a report by Motilal Oswal Financial Services. The leading issuances include Vedanta (₹8,500 crore), Zomato (₹8,500 crore), Adani Energy Solution (₹8,373 crore), Varun Beverages (₹7,500 crore), Godrej Properties (₹6,000 crore), PNB (₹5,000 crore), Prestige Estates (₹5,000 crore), JSW Energy (₹5,000 crore), Samvardhana Motherson (₹4,938 crore), and Adani Enterprises (₹4,200 crore).
The year was dominated by the Real Estate, Utilities, Automobiles, Metals, and PSU Banks sectors, which collectively accounted for 57 per cent of the total QIP issuances thus far.
Capital boost
QIPs are a bull market product and are typically used to raise fresh capital for expansion or to retire debt. Banks often use QIPs to shore up capital, while infrastructure companies use it to raise money to fund their growing order book.
Such placements are also a sign of confidence among promoters to raise capital for expansion, diversification and for setting up new plants and machinery.
Positive returns
More than two-thirds of the stocks have delivered positive returns against their issue prices. Of the 91 issues, six have delivered returns exceeding 100 per cent over their issue prices. The top performers were Shakti Pumps (380 per cent), Wockhardt (186 per cent), Anant Raj (171 per cent), eMudhra (133 per cent), and Ganesha Ecosphere (127 per cent).
Twenty six stocks are trading at a discount to their issue prices. The top underperformers include Vikas Lifecare (down 32 per cent), Valor Estate (30 per cent), Zodiac Energy (18 per cent), Adani Energy (17 per cent), and Jupiter Wagons (17 per cent).