QIP Fundraising Reaches Record High in 2024, Real Estate Leads with INR 22,320 Cr

Despite market turbulence and ongoing corrections in the Indian stock market, Qualified Institutional Placements (QIPs) soared to record highs in 2024. According to ANAROCK research, QIP issuances across sectors reached an all-time high with 99 issues raising nearly INR 1,41,482 crore, significantly outpacing previous years. The real estate sector emerged as a dominant force, with eight developers and one Real Estate Investment Trust (REIT) collectively raising INR 22,320 crore—accounting for 16% of the total fundraising.

Surge in Institutional Confidence

The sharp correction in Nifty 50 and Sensex since September 2024 has made retail and short-term investors cautious. However, institutional investors have taken a long-term view, particularly in real estate, which continues to attract strategic funding.

“Our analysis highlights the resilience of the real estate sector, supported by robust institutional confidence in India’s economic fundamentals,” said Anuj Puri, Chairman of ANAROCK Group. “Despite volatility, capital markets remain strong, and the sector has witnessed unprecedented QIP fundraising, reinforcing its financial strength and expansion potential.”

Real Estate Leads the QIP Boom

The real estate sector topped the list in both capital raised and the number of QIP issuances in 2024. The following table highlights major QIP transactions in the sector:

Comparing Trends: 2023 vs. 2024

The record-breaking QIP figures in 2024 mark a stark contrast to 2023, when only 43 QIP issues were recorded, raising INR 55,109 crore across all sectors. Notably, real estate developers did not raise any funds through QIPs in 2023, making 2024 a remarkable turnaround year for the sector.

Why QIPs?

QIPs have become the preferred fundraising method for developers due to their efficiency and cost-effectiveness compared to private equity and bank loans. They provide liquidity while minimizing shareholder dilution and enabling large-scale projects. Institutional investors, including mutual funds and pension funds, inject substantial capital, fueling sectoral growth.

The benefits of QIP fundraising include:

• Faster capital raising with lower costs
• Strategic funding for land acquisition, construction, and debt refinancing
• Enhanced market credibility, attracting further investments
• Accelerated project timelines and expansion capabilities

Stock Market Volatility and Real Estate Resilience

Throughout 2024, the Nifty 50 and Sensex experienced significant volatility. While the first half of the year saw strong corporate earnings and increased foreign institutional investment, market corrections in the latter half were driven by global geopolitical tensions, fluctuating oil prices, and changing monetary policies.

Despite these fluctuations, the real estate sector demonstrated resilience, with the Nifty Realty Index securing the fourth-highest annual gain at 34.67%.

Outlook for 2025

“The volatility seen in late 2024 suggests a mixed outlook for QIP fundraising in 2025,” said Puri. “However, the continued strength of the real estate index indicates sustained investor confidence.”

Institutional investors seeking stability amid broader market fluctuations are expected to remain active in real estate QIPs. If global monetary policies stabilize and domestic economic indicators remain strong, QIP fundraising in real estate is likely to maintain momentum, supporting further expansion, land acquisitions, and debt refinancing for major players.

Conclusion

Despite stock market volatility, 2024 set a new benchmark for QIP fundraising, particularly in the real estate sector. Institutional investors continue to back India’s real estate market, recognizing its long-term growth potential. With continued investor confidence and strategic capital inflows, the sector is poised for sustained expansion in 2025 and beyond.

Source: NSE & ANAROCK Research

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