QIP Fundraising Hits Record High In 2024, Real Estate Leads With Rs 22,320 Crore

Qualified Institutional Placements reached a new peak in 2024, with 99 issues raising nearly Rs 1,41,482 crore across various sectors. This marks the highest-ever QIP fundraising in the past 11 years, significantly surpassing the previous record of Rs 80,816 crore in 2020, an Anarock report noted.

The real estate sector emerged as a dominant contributor, with eight developers and one Real Estate Investment Trust (REIT) collectively raising Rs 22,320 crore, accounting for 16% of the total QIP funds.

In stark contrast to 2023, which saw only 43 QIP issues raising Rs 55,109 crore with no contributions from the real estate sector, 2024 witnessed a remarkable surge in fundraising activities. The increased QIP activity highlights the growing confidence of institutional investors in the long-term growth prospects of the Indian real estate market, the report said.

The Indian stock market experienced significant turbulence in 2024, with steep corrections following record highs in the Nifty 50 and Sensex indices. The ongoing market correction, which began in late September 2024, has left investors cautious. Despite this volatility, institutional investors have shown a strong appetite for QIPs, particularly in the real estate sector, indicating their focus on long-term growth opportunities, Anarock said.

The real estate sector, including developers and REITs, ranked first in QIP fundraising both in terms of capital raised and the number of issues," says Anarock Chairman Anuj Puri. "Notably, we saw twice the number of QIP issues in 2024 than in the previous year. This sets a record for the highest number of issues in a single year. Institutional investors remain extremely bullish on the real estate sector's growth potential," said Puri.