QIP fundraising hit a record high in 2024; real estate leads with Rs 22,320 cr

Following a period of high growth in both the Nifty 50 and Sensex indices the Indian Stock market was hit with steep corrections since late September 2024 causing uncertainty among investorsDespite the stock markets volatility while retail and shortterm investors react to volatility with caution institutional investors such as large funds or organisations have continued to invest heavily in longterm opportunities in Indian real estateFive Nifty indices surged over 3037 in 2024 with the Real Estate index securing the 4th spot posting a strong 346737 annual gain One of the key drivers of this real estate interest is Qualified Institutional Placements QIPs a method companies use to raise funds by issuing shares to institutional investors In 2024 the fundraising momentum through QIPs in the real estate industry struck high notes as per ANAROCK researchResearch shows that the real estate sector remained a dominant contributor last year with eight developers and one REIT collectively raising a total of Rs 22320 crldquoIn short robust financial positioning supports the massive influx of upcoming real estate developmentsrdquo says ANAROCK chairman Anuj PuriA total of 99 issues across various sectors raised over Rs 141482 crore through QIPs hitting an alltime high in 2024 marking a 7537 increase over the previous alltime high of Rs 80816 Cr back in 2020The real estate sector including developers and REITs ranked first in QIP fundraising both in terms of capital raised and the number of issues says PuriHe further said 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 sectors growth potentialIn 2023 the real estate fundraising trend through QIPs was nil which means that the real estate developers did not raise any funds via this route that yearQIPs are a faster and more costeffective way for developers to raise capital than private equity and bank loans offering liquidity without excessive shareholder dilution and preserving ownership structures while enabling larger projects and investmentsCollectively these benefits accelerate project timelines allowing developers to execute ambitious expansionAccording to Puri ldquothe overall volatility particularly in H2 2024 suggests a mixed outlook for QIP funding in the real estate sector in 2025While tightening fiscal policies and global uncertainties may temper broader equity market sentiment the strong performance of the Real Estate index despite volatility is a testament to sustained investor interest in the realty sector he addedInvestors seeking stability amid broader market fluctuations will see real estate as a good hedge against volatility as per ANAROCK research