QIP fundraising hits five-year peak in July so far, SBI leads with landmark Rs 25,000 crore issue

Market analysts attribute this momentum to listed companies effectively tapping into institutional liquidity.

Qualified Institutional Placements (QIPs) saw a robust resurgence in July so far, with total fundraising touching a five-year high of over Rs 30,470 crore across ten issuances. This marks the strongest monthly performance since September 2020, when six companies collectively raised more than Rs 39,000 crore through QIPs.

Market analysts attribute this momentum to listed companies effectively tapping into institutional liquidity. Despite moderate returns, institutional investors continue to show strong appetite for such offerings.

According to Ajay Garg, CEO of SMC Global Securities, investors are increasingly favouring QIPs and IPOs over secondary market purchases due to more attractive valuations, access to quality stocks at issue prices, and strong post-listing performance. He added that QIPs offer companies a faster and more cost-efficient route to raise growth capital or reduce debt, further aided by regulatory clarity and improved governance — signalling deeper market maturity and expanding investor participation.

A major highlight in July was the State Bank of India’s record-breaking QIP on July 17, which raised nearly Rs 25,000 crore — the largest-ever QIP by a single entity. Investor interest was notably strong, with demand reportedly exceeding the supply by nearly three times.

Other significant QIP transactions during the month included CG Power raising over Rs 3,000 crore, Marathon Nextgen collecting Rs 900 crore, and Navin Fluorine securing Rs 750 crore. Additional participants in July's QIP spree included Phantom Digital, Shakti Pumps, Rajoo Engineers, and Tinna Rubber, among others.

Beyond July, 2025 has already witnessed several large-scale QIPs. Biocon raised Rs 4,500 crore, Hitachi Energy mobilised Rs 2,500 crore, IREDA brought in Rs 2,000 crore, while both UCO Bank and Capri Global Capital secured Rs 2,000 crore each. In June alone, seven companies raised over Rs 14,084 crore.

So far in 2025, a total of 30 companies have raised nearly Rs 60,000 crore via QIPs, building on the strong momentum from 2024, when 95 firms collectively raised more than Rs 1.37 lakh crore.

Commenting on the trend, independent analyst Ajay Bagga highlighted that falling domestic interest rates, ample local liquidity, rising equity culture, inflows from domestic as well as foreign, and the ease of QIP allotments are all contributing to this surge. While there are concerns around promoter stake dilution, the market appears focused on long-term growth potential, choosing to look past short-term issues.