QIP Market Eyes Selective Recovery in 2026 After Subdued 2025

• Qualified Institutional Placements (QIPs) are expected to see a selective recovery in 2026, driven by visible capital expenditure pipelines and strong domestic institutional liquidity, following a subdued 2025.
• The QIP market in 2025 saw a significant drop, with 36 companies raising Rs 76,490 crore, compared to a record Rs 1,36,060 crore by 95 companies in 2024, primarily due to valuation concerns and market volatility.
• Experts like Kaushal Shah and Samir Bahl attribute the 2025 slowdown to valuation friction and promoters' reluctance to dilute equity at unattractive prices amidst market uncertainty.
• Capital-intensive sectors such as industrials, financials, real estate, infra/energy, PSU banks, power, and renewables are expected to drive QIP issuance in 2026.
• Debt repayment will remain a significant use of QIP proceeds, alongside funding capacity expansion and growth, as companies balance financing strategies.

Why It Matters: QIP market anticipates a selective rebound in 2026, fueled by capex and domestic liquidity, after a challenging 2025.