Fund raising via QIPs down 76 pc to Rs 4,627 cr in 2016

Indian firms raised over Rs 4,600 crore through issuance of shares to institutional investors during 2016, a sharp fall of 76 per cent from the previous year.

The funds have been mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

Qualified Institutional Placement (QIP) is an alternative mode of resource raising available to listed companies for raising funds from domestic market.

In a QIP, a listed entity issues equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.

As per the latest data available with the Securities and Exchange Board of India (Sebi), funds raised by listed firms through QIP route stood at Rs 4,627 crore for the twelve months of 2016.

In comparison, companies had mopped up Rs 19,006 crore in 2015.

In terms of numbers, 16 issues were witnessed in 2016 as compared to 33 during the previous year.

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