PSU banks line up QIP issues worth over Rs 15,000 cr

The country's largest lender, SBI, which is planning to mop-up Rs 9,576 crore through a QIP in January-March quarter, has already received government approval for it.

Besides, IDBI Bank plans to raise Rs 1,200 crore via sale of shares to institutional investors, Dena Bank - Rs 800 crore, IOB - Rs 350 crore and Allahabad Bank - Rs 320 crore.

Last week, private player Dhanlaxmi Bank had allotted 1.75 crore equity shares at Rs 38.25 apiece, aggregating Rs 67.22 crore to qualified institutional buyers through qualified institutional placement.

QIP is a capital raising tool whereby a listed firm can issue equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.

Overall, Indian companies raised a staggering over Rs 12,000 crore in 2013 through QIP issuance, as against nearly Rs 10,000 crore garnered in the preceding year.

However, the number of issuance declined to 21 in 2013 from 47 last year.

Market experts said attributed the growth in fund raising via QIPs to volatile market conditions and it were easier to raise funds from institutional investors.