QIP Fundraising Hits Record High in 2024, Real Estate Leads with ₹22,320 Crore: Anarock

Qualified Institutional Placements (QIP fundraising) in India reached an unprecedented high in 2024, despite ongoing market volatility. According to a study by real estate consultancy firm Anarock, QIP fundraising across sectors hit a historic peak, with 99 issues raising a total of ₹1,41,482 crore. This marks a staggering 75% increase from the previous record of ₹80,816 crore in 2020. Institutional investors remain optimistic, signalling confidence in the country’s economic fundamentals and long-term growth potential.

Real Estate Sector Leads QIP Fundraising

The real estate sector emerged as the frontrunner in QIP fundraising in 2024, with 8 developers and one Real Estate Investment Trust (REIT) collectively raising ₹22,320 crore. The surge in capital inflow highlights the sector’s resilience and attractiveness to institutional investors despite fluctuations in market conditions.

Anarock’s report underscores the robust demand in real estate, stating, “The real estate sector remained a dominant contributor in 2024, with institutional investors demonstrating strong confidence in India’s economic fundamentals.” The number of QIP issues in 2024 was twice that of the previous year, setting a record for the highest-ever QIP issuances in a single year.

Top Real Estate Companies Raising Capital

Several leading real estate companies capitalised on QIP fundraising to secure substantial investments. The top firms include:

• Godrej Properties – ₹6,000 crore (December 3, 2024)
• Prestige Estate Projects – ₹5,000 crore (September 10, 2024)
• Brookfield India REIT – ₹3,500 crore (December 10, 2024)
• Macrotech Developers – ₹3,300 crore (March 7,2024)
• Brigade Enterprises – ₹1,500 crore (September 6, 2024)
• D B Realty – ₹920 crore (March 18, 2024)
• Keystone Realtors Ltd – ₹800 crore (May 29, 2024)
• Max Estates Ltd – ₹800 crore (September 4, 2024)
• Anant Raj Ltd – ₹500 crore (January 23, 2024)

The Benefits of QIP Fundraising

QIP fundraising remains an attractive option for developers due to its efficiency and cost-effectiveness compared to traditional private equity or bank loans. The key advantages include:

• Quicker access to capital: QIPs offer a streamlined process, allowing companies to raise funds more rapidly.
• Reduced shareholder dilution: Unlike other fundraising methods, QIPs minimise ownership dilution, preserving control for promoters.
• Enhanced market credibility: A successful QIP issuance boosts investor confidence, positioning companies for further growth opportunities.
• Flexible fund utilisation: The raised capital can be used for land acquisition, construction, debt refinancing, or business expansion, ensuring financial stability.

Institutional Investors Stay Bullish Despite Market Volatility

The Indian stock market witnessed sharp corrections in late 2024, with the Nifty 50 and Sensex experiencing fluctuations. However, QIP fundraising continued its momentum, proving the resilience of institutional investments. While retail investors remained cautious, large financial institutions and pension funds capitalised on long-term opportunities, particularly in the real estate sector.

As QIPs continue to provide companies with cost-effective capital, their role in shaping India’s financial landscape is poised for further expansion.

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