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Indian firms raise funds worth Rs 26,000 crore via QIPs up to Aug 2014

During January-August period of 2014, funds were garnered through as many as 21 QIP issuances as per the capital market regulator.

According to industry estimates, the total funds raised in 2014 could be more than Rs 30,000 crore. (Photo: Reuters) According to industry estimates, the total funds raised in 2014 could be more than Rs 30,000 crore. (Photo: Reuters)

Fund raising through the qualified institutional placement (QIP) crossed the Rs 26,000 crore mark in 2014, indicating increased traction among domestic firms to raise funds via this route.

Domestic companies have raised a total of Rs 26,354 crore in the first eight months of the year, more than double the amount garnered in the entire 2013, as per data compiled by the Securities and Exchange Board of India (Sebi).

During January-August period of 2014, funds were garnered through as many as 21 QIP issuances as per the capital market regulator.

According to industry estimates, the total funds raised in 2014 could be more than Rs 30,000 crore.

Market experts said that return of investor confidence in the domestic equity market has encouraged some of the large firms to mop-up funds through the QIP route.

Interestingly, most of the funds were raked in through QIP issuances after the election verdict was announced in May, thus clearly showcasing the revival of investor sentiment, backed by a strong secondary market, experts say.

Among the firms which garnered funds via QIP segment this year included State Bank of India (SBI), Yes Bank, Idea Cellular and Reliance Communications.

The fund raising was in line with the benchmark Bombay Stock Exchange (BSE) Sensex gaining around 24 per cent in 2014 so far.