Indian businesses saw an unprecedented increase in capital-raising from Qualified Institutional Placements (QIPs) in FY25, racking up a record ₹1.33 lakh crore. This represents a sharp jump from the previous year, with a booming stock market driving ambitious capital-raising efforts.
As per Prime Database data, Corporate India has raised ₹1,33,251 crore in FY25, which is a rise of 87% over ₹71,306 crore raised in FY24. Experts place this surge in businesses using a resilient equity market to strengthen balance sheets and fuel growth plans.
The number of firms availing themselves of QIP opportunities also recorded a significant rise. While 64 companies availed this avenue during FY24, the number jumped to 85 during the current financial year.
"FY25 saw the largest-ever QIP fundraising in Indian capital markets history, both in terms of value and volume," Neha Agarwal, Managing Director & Head of Equity Capital Markets at JM Financial, said in an interview with PTI. She attributed this growth to a larger trend of corporate deleveraging facilitated by robust capital market conditions.
"With equity becoming the favored method of fundraising, corporates are driving growth and expansion through the use of organic as well as inorganic opportunities," she further stated.
QIPs offer listed companies and investment trusts a quick means to raise funds from institutional investors without necessitating pre-issue filings with the regulators. The year has witnessed high participation from sectors like real estate, utilities, automobiles, metals, and public sector banks.
Among the largest QIP contributors in FY25 were Vedanta Group and food delivery giant Zomato, each raising ₹8,500 crore. Adani Energy Solutions came next with ₹8,373 crore, followed by Varun Beverages, which raised ₹7,500 crore.
Other notable QIP transactions were those of Samvardhana Motherson International for ₹6,438 crore, Godrej Properties for ₹6,000 crore, and Prestige Estates Projects for ₹5,000 crore. Apart from this, major public sector banks like Punjab National Bank, Bank of Maharashtra, UCO Bank, Indian Overseas Bank, Central Bank of India, and Punjab & Sind Bank together mobilised more than ₹14,000 crore.
Firms like JSW Energy, Brookfield India Real Estate Trust, Torrent Power, and Bharat Forge also used QIPs to shore up their balance sheets.
JM Financial continued to lead in handling QIPs during FY25. Up to February, the company topped the list of transactions executed, successfully managing 15 QIP transactions that raised a combined amount of ₹38,693 crore (about $4.5 billion), as per Prime Database.
Much of this fund-raising was from large QIPs of over ₹250 crore. The fund raised in this category jumped from ₹24,900 crore in FY24 to ₹38,693 crore in FY25, an increase of 55.4%.
"JM Financial topped FY25 year-to-date QIP volumes for deals over ₹250 crore ($30 million) with 15 deals that together raised ₹38,693 crore ($4.5 billion)," Agarwal added.
Vinod Nair, Geojit Investments Head of Research, emphasized that the Indian stock market's continued surge between 2020 and 2024—a peak 40% jump in FY25—has been strong enough to anchor corporate fund raising. He also noted that companies and promoters took advantage of encouraging market valuations to mop up large amounts of capital through equity sales.
QIP funds have, in large part, been employed to increase companies with fresh projects, acquisitions, or repayment of debt. Nair also noted that though QIPs have been dominant across sectors, manufacturing and emerging tech sectors should lead future fund-raising, backed by India's export growth and government-sponsored Production Linked Incentive (PLI) schemes.
But the near-term outlook for QIP activity is still guarded. Nair said that market consolidation has cooled companies' enthusiasm to dilute equity at lower prices.
"Market corrections in the second half of FY25, fueled by global and domestic economic frailties, have resulted in muted sentiment. This trend is expected to continue in the short to medium term, possibly constraining the speed of QIP issuances," he said.
Going forward, the Association of Investment Bankers of India (AIBI) has estimated that capital raised via QIPs and IPOs may cross ₹3 lakh crore in FY26.
"Fundraising activity has been on a growth path for the last two years and is likely to keep growing in 2026. The overall capital formation through IPOs and QIPs is likely to exceed ₹3 lakh crore in the next fiscal," said Mahavir Lunawat, Chairman of AIBI.
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