Fund mop-up via QIP dips 58 pct at over Rs 1600 cr in Q3

Funds raised by Indian companies through Qualified Institutional Placement (QIP) plunged by 58 per cent to over Rs 1,600 crore in the third quarter of the ongoing fiscal. Firms had mopped up Rs 4,123 crore through QIP route during the October-December period of previous fiscal 2014-15. The funds have been raised for expansion, refinancing of debt and to meet working capital requirements. According to the data available with the Securities and Exchange Board of India (Sebi), Indian firms garnered Rs 1,697 crore via QIP route during October-December 2015-16, lower than Rs 4,123 crore mopped up in the same period of 2014-15. The funds mobilised by companies through QIP issues rose to Rs 1,288 crore in December from Rs 409 crore in the preceding month. During the first nine months of 2015-16 fiscal, the highest fund mobilisation was seen in July (Rs 4,824 crore), followed by September (Rs 4,338 crore). August saw the lowest amount (Rs 231 crore) garnered through institutional investors. October saw no QIP issues. In terms of numbers, four issues were witnessed during the period under review as compared to 17 issues in the corresponding quarter.