India Inc Raises Record ₹1.33 Trillion via QIPs in FY25

Indian companies have shattered fundraising records in FY25, raising a staggering ₹1.33 trillion through Qualified Institutional Placements (QIPs). This marks the highest-ever QIP fundraising in India’s capital market history, showcasing the strong appetite of institutional investors and the strength of domestic equity markets.

According to Prime Database, Indian firms raised ₹1,33,251 crore via QIPs by March 31, 2025. This represents an 87% surge compared to ₹71,306 crore in FY24. A total of 85 companies accessed capital through this route, up from 64 in the previous fiscal year.

Bullish Market Sentiment Drives QIP Boom

Companies capitalized on the bullish equity market to raise capital for deleveraging, expansion, and acquisitions. The rally in India’s stock markets since 2020 has provided fertile ground for corporates to strengthen their balance sheets without turning to debt.

“FY25 witnessed the highest-ever QIP fundraising in the history of Indian capital markets, both in terms of volume and value,” said Neha Agarwal, Managing Director and Head of Equity Capital Markets at JM Financial, in an interview with PTI.

Agarwal emphasized that equity fundraising has emerged as the preferred route for corporates, enabling them to fund organic and inorganic growth opportunities efficiently.

QIPs Offer Speed and Simplicity

Qualified Institutional Placements provide a quick and regulatory-light pathway for listed companies to raise funds from institutional investors. Unlike public issues, QIPs do not require extensive pre-issue filings with regulators, allowing firms to act swiftly when market conditions turn favorable.

This agility made QIPs the ideal tool during FY25, particularly as market volatility increased toward the latter part of the fiscal year. The 2:1 bonus issue by BSE, which led to a strong rally in its stock price, further exemplified how equity-based strategies gained traction among Indian corporates.

Big Names Lead the Charge

Several high-profile firms executed large QIP deals during FY25, contributing to the fundraising record:

Vedanta Group – ₹8,500 crore
Zomato – ₹8,500 crore
Adani Energy Solutions – ₹8,373 crore
Varun Beverages – ₹7,500 crore
Samvardhana Motherson International – ₹6,438 crore
Godrej Properties – ₹6,000 crore
Prestige Estates Projects – ₹5,000 crore

These marquee deals illustrate a broad-based willingness among blue-chip companies to raise equity capital aggressively, especially during market peaks.

State-run banks also participated actively. Punjab National Bank, Bank of Maharashtra, UCO Bank, Indian Overseas Bank, Central Bank of India, and Punjab & Sind Bank together raised over ₹14,000 crore, strengthening their capital buffers amid a growing credit cycle.

JM Financial Leads in QIP Mandates

JM Financial led the pack in managing QIP transactions during FY25. As of February 2025, the firm completed 15 QIP deals worth ₹38,693 crore, according to Prime Database. These included multiple large transactions above ₹250 crore.

“JM Financial secured the number one position in FY25 in QIP volumes in deals above ₹250 crore, successfully closing ₹38,693 crore worth of transactions,” Agarwal confirmed.

The firm’s success highlights the growing importance of investment banking expertise in navigating market timing, investor targeting, and regulatory compliance in India’s capital markets.

Surge Rooted in Strong Market Run

The backdrop to this fundraising spree was a 40% rally in India’s broader markets during FY25, driven by robust earnings, FII inflows, and macroeconomic resilience. Companies leveraged higher stock prices to raise capital at minimal dilution, often locking in valuations near all-time highs.

Vinod Nair, Head of Research at Geojit Financial Services, pointed out that this capital-raising trend reflects strategic financial planning by promoters, who used the uptrend to offload partial stakes or raise fresh equity.

“Promoters have capitalized on increased valuations to raise funds through QIPs, often reinvesting proceeds into capex, acquisitions, or reducing leverage,” Nair said.

He added that the momentum of equity-led growth funding allowed companies to avoid excessive reliance on debt, leading to more sustainable capital structures.

Sectoral Diversity in QIP Activity

QIP issuances spanned a diverse set of sectors:

Manufacturing and industrials led fundraising, thanks to PLI (Production Linked Incentive) schemes and export growth.
Technology and digital platforms leveraged market optimism to fund R&D and user acquisition.
Banking and financial services used QIPs to enhance Tier 1 capital and support rising credit demand.
Real estate and infrastructure tapped QIPs to fund urban expansion and project execution.

This sectoral spread indicates that QIP activity is not limited to a few industries but represents a broader trend across India Inc.

Near-Term Outlook: Market Consolidation Slows Momentum

Despite FY25’s spectacular numbers, analysts expect a cautious outlook for QIPs in the near term. Market volatility in the latter half of the fiscal year has led many promoters to defer equity fundraising plans.

“Market corrections, triggered by both global and domestic uncertainties, have tempered sentiment,” Nair explained. “This will likely cause a slowdown in QIP activity, especially as promoters avoid raising funds at lower valuations.”

Analysts also expect heightened scrutiny from investors in upcoming QIPs. With markets entering a consolidation phase, deal success will depend on the company’s fundamentals, growth plans, and pricing strategy.

Key Drivers Behind the FY25 QIP Boom

Favorable Equity Markets: Companies used bullish sentiment and high valuations to raise capital without significant dilution.
Speed and Efficiency: QIPs allowed firms to quickly mobilize funds with fewer regulatory hurdles.
Strategic Goals: Firms funded greenfield and brownfield expansions, M&A, and debt reduction.
Investor Appetite: Domestic and global institutions showed strong interest in Indian equities, supporting large-scale placements.
Government Support: PLI schemes, infrastructure reforms, and export growth enhanced the capital needs of emerging sectors.

Final Thoughts

FY25 stands out as a watershed year for equity capital markets in India. Indian companies demonstrated strategic agility by tapping into QIPs at the right time, raising capital for growth, efficiency, and resilience. The year’s record fundraising marks a new benchmark in institutional engagement and financial maturity.

While the momentum may slow in the short term due to market consolidation, the long-term story remains intact. As Indian companies continue to scale and innovate, QIPs will remain a critical tool for fundraising—bridging investor appetite and corporate ambition.