Small BusinessAfter a robust 2009, India Inc start '10 with Rs 5,800 cr QIPs
After robust 2009, wherein funds garnered via the Qualified Institutional Placements (QIP) route touched a record Rs 41,522 crore, India Inc seem keen to start this year too on an earnest note. Most companies prefer the QIP route as it cheaper and quickest route with minimum disclosures. There"s no lock-in and the whole process takes little time.
As many as five companies are lined up to collectively raise Rs 5,311 crore in the next few days. Five companies, including two banks, Yes Bank and Karnataka Bank, Electrosteel Castings, HDIL and Shriram Transport Finance are the ones. Meanwhile, Usha Martin closed its QIP issues on Monday, mobilised Rs 468 crore, thus total this year"s tally to Rs 5,779 crore.
Yes Bank fixed its floor price of Rs 269.46, and plans to raise Rs 1,141 crore. Shriram Transport Finance to raise Rs 1,000 crore, with floor price of Rs 501 per share. HDIL is proposed to raise Rs 2,070 crore. Electrosteel Castings proposed to raise Rs 600 crore composite QIP issue consists of placement of equity shares and non-convertible debentures (NCDs) with warrants.
In fact, as many as more than 100 companies are planning to raise around Rs 1,00,000 crore through QIP issues.