INSUBCONTINENT EXCLUSIVE:
raft of companies issuing QIPs to raise Rs 74,000 crore in total
However, most have failed to reward their investors well, despite record highs for the broader market gauges.
Of the 81 companies that
raised money through QIPs in the past two years, shares of only 23 companies are trading above the issue price, while about half of these
companies are down 20-65 per cent.
Several of the under-performing companies include the public sector banks
Ten such lenders raised Rs 27,500 crore through QIPs in the last two years
Shares of eight of them are down between 30 per cent and 56 per cent
By contrast, NBFCs and auto ancillary companies have done reasonably well since the QIPs
Some of the big names that raised relatively large amounts of money but did not deliver include Punjab National Bank, Idea Cellular and
Manpasand Beverages, which recently had issues with its auditors, has also been a major loser since its QIP.
Institutional investors buying
stock through QIPs have an advantage as shares are issued at a discount to market prices, and such transactions also save them the impact
