Qips

With nearly 270 million new shares being issued within 13 months since its November 2024 IPO, shareholders face almost 10% dilution in a single year.

Companies that raised funds via QIPs at lofty valuations are now delivering weaker results, and their stocks are slipping. When companies tap the market at its peak, investors often end up holding shares with little support underneath.

Companies put their fundraising plans on back burner in hope for a 2024 like bull run in the markets.

The recent sell-off in Indian equities has led companies to postpone their listing plans. Will a resurgence in qualified institutional placement (QIP) activity facilitate new initial public offerings (IPOs)?

At least three of the five public sector banks with more than 75% government ownership are expected to raise capital through qualified institutional placements in 2025-26

Even as FIIs consider valuations in the secondary market high, they remain upbeat on India's market narrative, compelling them to seize every opportunity, say experts.

India’s robust bull market played a key role in listed companies tapping QIPs to raise capital. Market experts see India’s buoyant stock market performance continuing this year, although some are tempered in their expectations.