Equity Fundraising Crosses ₹1 Lakh Crore Since April As IPO And QIP Activity Gains Pace

Indian companies have mobilised more than ₹1 lakh crore through equity fundraising since April, supported by a revival in qualified institutional placements (QIPs), offer for sale (OFS) transactions, block deals and a steadily improving IPO market. Stronger equity markets and sustained investor participation have encouraged promoters and companies to tap capital markets after a relatively slow start to the year.

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The fundraising success comes on the back of a generalized recovery in domestic stocks. Since April, both the Sensex and the Nifty have climbed about 7%, but the broad market has performed even better. During the same period, the BSE 150 MidCap Index has advanced 17%, the BSE 250 SmallCap Index has climbed 25%, and the BSE 250 Microcap Index has surged 30%.

QIPs, OFSs And Block Deals Drive Capital Raising

According to Prime Database, the government raised nearly ₹18,700 crore through six OFS transactions involving Central Bank of India, Coal India, NHPC, NLC India, General Insurance Corporation and IRFC.

Block and bulk deals have also gathered momentum, with transactions exceeding ₹55,000 crore since April.

Among the largest were Adani Ports and Special Economic Zone at about ₹7,486 crore, Billionbrains Garage at ₹5,700 crore, Lenskart Solutions at over ₹5,300 crore, Adani Enterprises at ₹4,790 crore and Macrotech Developers at ₹3,100 crore. Saksoft and Ramco Systems each recorded deals worth around ₹1,700 crore, while PB Fintech saw a transaction valued at approximately ₹1,600 crore.

QIP activity accelerated during the April-June quarter, with companies raising a combined ₹23,400 crore. One company raised ₹2,500 crore in April, followed by two companies mobilising ₹4,350 crore in May. June accounted for the bulk of the activity, with nine companies raising nearly ₹16,500 crore. In July, Adani Enterprises launched a ₹15,000 crore QIP.

IPO Pipeline Regains Momentum

The primary market has also shown signs of recovery after slowing earlier in the year. Seven mainboard IPOs raised ₹2,718 crore in June, while the SME segment remained active with 17 IPOs raising ₹750 crore in May and another 24 IPOs mobilising ₹930 crore in June.

Several large public offerings are also moving ahead. NSE and Jio have filed draft papers for their proposed IPOs, while SBI Funds Management, Zepto and Manipal Health are expected to enter the market in the coming months, as per reports.

Market Recovery Supports Fundraising

The latest surge follows a subdued January-March period, when only four companies raised about ₹4,250 crore through QIPs, while two public sector companies together raised around ₹6,700 crore through OFSs. IPO activity remained relatively stronger during that quarter, with 18 companies raising approximately ₹18,779 crore.

Equity funding has seen an improvement due to favorable market conditions and good investor participation within various channels of funding. Considering that there are numerous IPOs, QIPs, and OFS deals lined up for the upcoming period, the capital market activity will likely remain buoyant, but the speed of progress will always depend on market conditions.