Real estate developers in India raised Rs 12,801 crore through qualified institutional placements (QIPs) in the first nine months of this year, more than 17 per cent of the total QIP issuance in the sector at Rs 75,923 crore, a report showed on Monday. has gone
After renewable energy, real estate is the second sector to raise funds through QIP so far this year.
“This strong QIP activity highlights the sector’s important role in India’s broader capital markets – and the growing confidence of institutional investors in Indian real estate,” said Anuj Puri, Chairman, Anarock Group.
According to the report, increased transparency, a robust post-pandemic residential real estate recovery, and strong investor confidence are factors driving the activity, positioning the sector for continued growth.
The QIP route allows publicly traded companies to raise capital by offering equity or securities to be converted into equity to pre-approved institutional buyers. This fundraising approach allows companies to forgo the more traditional initial public offering (IPO) route and raise significant funds quickly.
Strong post-pandemic housing sales growth has prompted major developers to release related inventory into the market.
According to the report, over 13.62 lakh units have been launched in the top seven cities between this year (January-September) and 2021.
