QIP Fundraising Hits Record High in 2024, Real Estate Leads with ₹22,320 Cr
The recent turbulence in the Indian stock market, leading to steep corrections, have left investors wary. The ongoing correction began in late September 2024 after record highs in both the Nifty 50 and Sensex indices - since then, these key indices have declined markedly and continue to bleed. In sharp contrast, the fundraising momentum through Qualified Institutional Placements (QIPs) struck high notes in 2024, finds ANAROCK research. While retail and short-term investors react to volatility with caution, institutional investors have been doubling down on long-term growth opportunities in Indian real estate.
Anuj Puri, Chairman - ANAROCK Group, says, "ANAROCK’s analysis of the surge in QIP fundraising in 2024 highlights the real estate sector's continued might amid strong institutional confidence in India’s economic fundamentals. Despite market fluctuations, capital markets remain robust, and companies continue to attract strategic investments. Our research shows that the real estate sector remained a dominant contributor in 2024, with eight developers and one REIT collectively raising a total of INR 22,320 Cr. In short, robust financial positioning supports the massive influx of upcoming real estate developments."
Overall, fundraising via QIPs across sectors hit an all-time high in 2024 with a total of 99 issues raising over INR 1,41,482 crore. This issue amount marks a 75% increase over the previous all-time high of INR 80,816 Cr in 2020.
"The real estate sector, including developers and REITs, ranked first in QIP fundraising both in terms of capital raised and the number of issues," says Puri. "Notably, we saw twice the number of QIP issues in 2024 than in the previous year. This sets a record for the highest number of issues in a single year. Institutional investors remain extremely bullish on the real estate sector's growth potential."
"The overall volatility, particularly in H2 2024, suggests a mixed outlook for QIP funding in the real estate sector in 2025," says Puri. "While tightening fiscal policies and global uncertainties may temper broader equity market sentiment, the strong performance of the Real Estate index despite volatility is a testament to sustained investor interest in the realty sector."
Given that QIPs are driven by institutional investor confidence, there are strong indications that large and listed developers will continue to draw significant funding in 2025. Investors seeking stability amid broader market fluctuations will see real estate as a good hedge against volatility. Also, if global monetary policies stabilize and domestic economic indicators remain positive, QIP activity in Indian real estate will gain further momentum and continue to fuel expansion, land acquisitions, and debt refinancing among these players.
