Fund-raising via QIP plunges to Rs 4,837 cr in Apr-Feb FY17

Indian firms garnered Rs 4,837 crore from institutional investors during April-February period of the current fiscal, a sharp decline of 67 per cent from the year-ago period.

The funds have been raised for business expansion plans, repayment of loan, to meet working capital requirements and for other corporate purposes.

According to data available with the Securities and Exchange Board of India (Sebi), listed firms raised Rs 4,837 crore through Qualified Institutional Placement (QIP) route in the first 11 months of current fiscal, as compared to Rs 14,488 crore in the same period of 2015-16, translating into a drop of 67 per cent.

The period under review witnessed 17 issues as compared to 24 during the first eleven months of the last fiscal.

During the current fiscal, September turned out to be the most hectic month with the firms raising Rs 2,210 crore while April and November witnessed no fund-raising via QIP route.

In the entire 2015-16, about Rs 14,588 crore was mopped up through 24 issues, as per Sebi data.

QIP is an alternative mode of resource raising available for listed companies to raise funds from the domestic market.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)