The real estate sector has contributed about a sixth to the amount raised by way of qualified institutional placements (QIP) this year.
Of the ₹75,923 crore raised till September via QIPs, 17 per cent or ₹12,801 crore was by realty firms, data collated by ANAROCK Research shows.
Prestige Estates Projects, Macrotech Developers and Brigade Enterprises raised the most through this route.
“Strong QIP activity highlights the sector’s crucial role in India’s broader capital markets and institutional investors’ growing confidence in Indian real estate,” said Anuj Puri, Chairman, ANAROCK Group.
QIPs allow publicly traded companies to raise capital by offering equities or securities convertible into equity to pre-approved institutional buyers.
- Also read: Fundraising via QIP at record high of ₹69,725 cr in first 6 months of FY25
Robust housing sales growth after the pandemic has prompted leading developers to launch inventory across markets. According to ANAROCK Research, over 13.62 lakh units were launched across the top seven cities between 2021 and the first nine months of CY24.
Housing sales in these cities soared to 14.36 lakh units in this period. Effervescent sales led to an over 10 per cent decline in unsold housing inventory in this period, despite the high rate of supply addition.
“To fund their aggressive expansion, these developers are turning to IPOs and the QIP route,” said Puri. “Their success in these capitalisation efforts underscore the sector’s continued ability to attract both retail and institutional investors. We expect investor participation to grow manifold in the coming years.”
- Also read: QIP fundraising to surpass IPOs again in FY25, driven by DIIs
The Nifty Realty index surged by nearly 250 per cent between January 2021 and September 2024, making it the second-best performing sector index after the Nifty PSU Bank Index.
Strong demand from post-pandemic homebuyers has also prompted developers to raise funds via IPOs to fund new project launches across geographies. Since 2021, six developers, Macrotech Developers, Shriram Properties, Keystone, Signature Global, Suraj Estate and Arkade Developers, have collectively raised ₹5,275 crore through mainstream IPOs. Macrotech Developers has raised about Rs 2,500 crore.