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Indian companies raise $2 Billion in last three months
By siliconindia
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Wednesday, 08 July 2009, 00:04 IST |
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9,614 crore through (Initial Public Offerings or Follow On Public Offers (IPO/FPO), rights and Qualifies Institutional Placements (QIP) in a three month period of April to June '09 against 1985 crore in same quarter in previous fiscal. The total amount generated through equity issues in India has climbed almost five times in the first quarter of 2009-10 due to the sharp revival of the economy, reports VCCircle.com.
This has happened even with the lesser number of the issues. As compared to 15 issues last year, there were only 13 IPO/FPO, rights and QIPs in the first quarter of the current fiscal. The exact quantum of overseas issues during the first three months last year is not clear but there were three overseas issues which raised 125.33 crore this year.
The nature of equity issues which have been floated has brought a major change in past one year. There have been just two IPO/FPOs as against more than a dozen last year. Institutional investors have become a key target for raising funds.
There have been eight QIPs in the first quarter accounting for the bulk of funds raised from the market. QIPs have raised 9,284 crore for the quarter, compared to not a single QIP last year in the same period.
The QIP bandwagon, which started with Unitech raising over 1,600 crore in April followed by 500 crore placements by PTC India (PTC) and the mega 2,656 crore placement by Indiabulls Real Estate has only gathered steam.
The QIP revival must have adversely impacted the revival of private equity deals in the country. The lengthy investment decision process of PE firms has been the reason for companies switching over to QIPs to raise money, according to I-bankers.