India Inc raised a staggering over Rs17,000 crore through institutional placements for their business expansion plans, refinancing of debt and to meet working capital needs.
Moreover, many companies have lined up their plans to raise fund through Qualified Institutional Placement (QIP) route. This comes on top of Rs31,684 crore that was raised by various listed firms by issuance of shares to institutional investors in the entire 2014.
According to an analysis of data available with Sebi, firms have mopped up Rs17,124 crore through 25 issuance during the January-July period in 2015. Most of the funds raised through QIPs were for expansion plans, refinancing of debt and to support working capital requirements. QIP is a capital-raising tool, whereby a listed firm can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer.