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QIPs lead the show as real estate sector sees 17-year-high equity fundraising

Money Control · 2m

Real estate companies in India have raised INR 14,572 crore (approximately $1.9 billion) through equity fundraising activities, marking a significant turnaround for the sector in a post-pandemic recovery. The funds were raised through initial public offerings (IPOs) and qualified institutional placements (QIPs). QIPs accounted for INR 11,746 crore (around $1.6 billion) of the total, a record-breaking amount. The increase in equity fundraising shows renewed investor interest in the real estate sector, driven by increased residential sales, strong commercial leasing demand, and improved profitability. IPOs are also expected in the sector, including in allied industries such as hospitality and coworking. However, experts caution that rising prices and project execution delays could impact the sector's growth.