Archive · 12 Nov 2025
QIPs Slow Down in H1 FY26 After Record Fundraising in FY25
Imagine companies wanting to get more money to grow their business.
They can do this by selling special shares called QIPs, which are bought by big investors.
Last year was amazing for QIPs, with companies raising a lot of money.
However, this year, it's been much quieter.
Think of it like this: when the stock market is jumpy and uncertain, big investors get a bit nervous, and companies also hold back from asking for money for new projects.
It's like the market is taking a break after a very busy party.
Companies that already raised money recently don't need more right now.
Plus, borrowing money through loans is sometimes easier than selling more shares.
So, while companies still need money, they are using other ways to get it, or waiting for a better time to sell QIPs.
Some companies have even sold QIPs not long after they first started trading publicly.
Qualified Institutional Placements (QIPs) have seen a noticeable decline in the first half of FY26 after reaching record highs in FY25.
In H1 FY26, ₹50,106 crore was raised through 25 QIP issues, a decrease from ₹64,750 crore via 50 issues in the same period last year.
The entire fiscal year FY25 saw a record ₹1,35,597 crore raised across 91 QIP issues.
Market volatility, cautious corporate demand for expansion, and the attractiveness of debt markets are cited as reasons for the slowdown.
The State Bank of India's ₹25,000 crore QIP was the largest in H1 FY26, accounting for half the total value raised.
- Who
- Companies in India, including State Bank of India, Biocon, CG Power & Industrial Solutions, Indian Renewable Energy Development Agency, and Capri Global Capital.
- What
- A significant slowdown in fundraising through Qualified Institutional Placements (QIPs) in the first half of FY26 compared to record highs in FY25, with equity fundraising via rights and preferential issues gaining share.
- When
- First half of FY26 (April-September 2025) compared to FY25 and the same period last year.
- Where
- India's equity capital markets.
- Why
- Market volatility, cautious corporate demand for expansion, a high fundraising base in the previous year, and the attractiveness of debt markets over equity for some companies.
Reasons for Slowdown
Explanations for Slowdown
Market Conditions
Reasons for Slowdown
Market volatility in the current fiscal year has impacted QIPs, as they are considered a 'bull market product'.
Explanations for Slowdown
The exceptional fundraising base in the previous year (FY25) naturally creates headwinds for growth in the current year (FY26). Additionally, debt markets remain an attractive alternative to equity, encouraging firms to delay dilution.
Corporate Demand for Funds
Reasons for Slowdown
A slowdown in demand for funds from the corporate sector for new projects and expansion could be a reason for the muted QIP activity.
Explanations for Slowdown
Many companies have already raised substantial capital in recent years, reducing the immediate urgency for fresh QIPs. The pipeline of mid-sized QIPs is also thinner compared to the previous year.
- H1 FY26 QIP Issues Value
- ₹50,106 crore
- H1 FY26 QIP Issues Count
- 25
- FY25 Total QIP Fundraise Value
- ₹1,35,597 crore
- FY25 Total QIP Issues Count
- 91
- Share of QIPs in Total Equity Fundraise (H1 FY26)
- 25%
- Top QIP Issue (H1 FY26)
- State Bank of India (₹25,000 crore)
- Companies Issuing QIPs Soon After Listing
- Swiggy, Cello World, Max Estates, Aether Industries, Keystone Realtors, Indian Renewable Energy Development Agency
Sources
The 3 stocks DIIs bet big on (while FIIs fled)
Gautam Chhaochharia of UBS sees foreign interest returning, positive on India’s consumption theme
Big Bet: From FIIs to locals, everyone is banking on financial stocks as lenders escape direct hit from US tariffs
