Companies raise Rs 17500cr via QIP route in 6 mnths

Monsoon or not, it has been raining Qualified Institutional Placements (QIPs) this year. CNBC-TV18's Nimesh Shah and Avni Raja put together a performance scorecard of the 25 companies who took the QIP route.

Qualified Institutional Placements have taken the financial world by storm this fiscal year and no surprise why. Since March, 25 companies, including Unitech , Indiabulls Real Estate , HDIL , and more recently, Ing Vysya have together raised nearly Rs 17,500 crore by opting for a QIP. Brokerage firm SMC Capital says that the current mark-to-market value of all this money is nearly Rs 23,000 crore––that's a mark-to-market gain (M-T-M) of over 35%.

Nineteen of these companies have enjoyed positive returns. Unitech leads the way. It raised Rs 1,600 crore in its first QIP issue by selling shares at Rs 38.5 each. These shares are currently quoting at Rs 106.85 each that translates to an MTM gain of nearly 177%. Shree Renuka Sugars , which issued shares at Rs 137 per share, is currently clocking MTM gains of 42.74%. The other top five MTM gainers include Webel-SL Energy , Indiabulls Real Estate, and Unitech's second round of QIP.

However, it's not raining cash for every company. Five of the 25 QIPs are currently seeing negative returns.

Shares issued by Network 18 Fin Cap to raise Rs 204 crore through its QIP have lost 25% in value. REI Agro raised Rs 182 crore at Rs 61 per share the shares are now fetching Rs 47 on the market, an MTM loss of nearly 22%. Bajaj Hindusthan shares are currently trading at Rs 180.75 which is 11% lower than its QIP issue price. Issues from Orbit Corporation and Dewan Housing are also languishing.

However, experts point out that since only 20% of the issues are seeing tepid returns, QIPs are still a favourable instrument when it comes to raising funds.