The Indian stock market has been highly volatile in recent months, with sharp corrections affecting investor sentiment. The correction phase began in late September 2024, following record highs in the Nifty 50 and Sensex, and has resulted in a sharp decline in key indices.
Qualified Institutional Placements (QIPs) have continued to grow despite this slowdown, and according to Anarock research, 2024 will set a new fundraising record. Institutional investors continue to profit from long-term growth prospects in the real estate sector, while retail and short-term investors continue to exercise caution in the face of market volatility.
"Anarock's analysis of QIP fundraising in 2024 highlights the real estate sector's strength, indicating strong institutional confidence in India's economic fundamentals. Despite market volatility, capital markets remain strong and attract strategic investments. According to our research, the real estate sector led the way, raising ₹22,320 crore from eight developers and one REIT. This financial strength is expected to support a massive wave of new real estate developments," Puri stated.
Record QIP Fundraising Across Sectors
In 2024, 99 QIP issues raised ₹1,41,482 crore, a record high across sectors. This marks a 75% increase from the previous record of ₹80,816 crore in 2020. According to Anarock, the real estate sector has emerged as the market leader in QIP fundraising, both in terms of capital raised and number of issues.
The real estate sector, including developers and REITs, led QIP fundraising in 2024, setting a new standard for capital infusion. The number of QIP issues in 2024 was double that of the previous year, making it the most ever recorded in a single year. Puri stated that institutional investors continue to be very optimistic about the real estate sector's growth potential.
