Mumbai, Oct 28
Real estate developers in India raised Rs 12,801 crore via qualified institutional placements (QIPs) in the first nine months this year, which is over 17 per cent of the total QIP issuance across sectors at Rs 75,923 crore, a report showed on Monday.
After renewable energy, real estate came in second highest among sectors to raise funds through QIP so far this year.
“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,” said Anuj Puri, Chairman, Anarock Group.
According to the report, enhanced transparency, a robust post-pandemic residential real estate recovery, and strong investor confidence are factors driving a surge in activity, thereby positioning the sector for continued growth.
The QIP route allows 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 (IPO) route and quickly raise substantial funds.
Robust housing sales growth after the pandemic has prompted leading developers to unleash relevant inventory across markets.
As per report, over 13.62 lakh units have been launched across the top seven cities between 2021 till this year (January-September).