QIP Fundraising Hits Record High in India, Real Estate Leads with ₹22,320 Cr in 2024

Qualified Institutional Placements (QIPs) based fundraising saw all-time high for 2024 with 99 issues raising all-time high of ₹1,41,482 crore across industries in India as per a Thursday-report.

Listed companies is a quick path of capital raising with QIPs, providing it the edge that it gets capital without investing valuable time to documentation under securities rules.

Real estate industry was also the top industry during this surge, with a single REIT and eight developers together raising ₹22,320 crore, or 16% of overall QIP fund raising for the year, as per the report of the Anarock Group.

This is in stark contrast to 2023 when just 43 issues of QIP have raised ₹55,109 crore, with real estate being totally out of QIP space.

2024 has witnessed an 11-year high of QIP raising, which indicates the strong return of real estate investment when institutional investors have faith in the long-term growth of the sector.

Anuj Puri, Chairman at Anarock Group, noted the sector's comeback by stating:
"Growth in QIP raising during 2024 underlines the robustness of India's realty sector and affirm institutional confidence in India's fundamental economic base."

Record QIP action had taken place in the face of record volatility at the stock market.

Having hit record levels in the first half of 2024, both Sensex and Nifty experienced sharp corrections following global geopolitical risk and a change in global monetary policy.

While retail investors kept their heads down with the market fluctuations, institutional investors remained optimistic, injecting money into spaces that held the promise of long-term growth, especially real estate.

"Markets have weathered the storm, and markets are stable, and there's no cause for concern," Puri said in addition.

The robust financial traction is going to drive a succession of real estate development plans to follow.

But between January and September 2023, real estate builders raised ₹12,801 crore through QIPs—over 17% of what sectors raised the ₹75,923 crore till then.