Real Estate Developers Raise Rs 13,000 Crore Via QIP From January-September 2024

Real estate developers have raised nearly Rs 13,000 crore till September this calendar year through issue of equity shares via Qualified Institutional Placements route, according to Anarock.

Real estate consultant Anarock on Monday said that Indian real estate developers have been aggressively tapping capital markets through Initial Public Offerings and Qualified Institutional Placements after the COVID pandemic.

Enhanced transparency, a robust post-pandemic residential real estate recovery, and strong investor confidence are factors driving a surge in activity, it added.

Qualified Institutional Placements allow publicly-traded companies to raise capital by offering equities or securities convertible into equity to pre-approved institutional buyers. This fundraising approach lets companies skip the more conventional Initial Public Offering route and quickly raise substantial funds.

Anarock Chairman Anuj Puri said, "By the third quarter of 2024, the real estate sector contributed over 17% of QIP issuance across sectors, or Rs 12,801 crore of a total of Rs 75,923 crore. After renewable energy, real estate comes in second highest among sectors to raise funds through QIP so far this year," he added.

This strong QIP activity highlights the sector's crucial role in India's broader capital markets and the institutional investors' growing confidence in Indian real estate, Puri said.

As per the data, Prestige Estates Projects Ltd, Macrotech Developers and Brigade Entereprises were major players that raised money through QIP route at Rs 5,000 crore, Rs 3,281 crore and Rs 1,500 crore, respectively. D B Realty raised Rs 920 crore, while Keystone Realtors Limited and Max Estates raised Rs 800 crore each, Anant Raj Ltd raised Rs 500 crore through QIP.