QIP a success, envy of foreign bourses: Damodaran

Bangalore, Oct 30 (UNI) The trend of Indian companies planning to raise equity in foreign bourses will be reversed with the introducion of a new product qualified institutional placement (QIP) in the Indian capital market, Securities and Exchanges Board of India Chairman M Damodaran indicated today.

Delivering the foundation day lecture at the Indian Institute of Management-Bangalore, he said already 20 companies have chosen the QIP route and its growing popularity had even caught the imagination of exchanges in other countries. Luxumbourg, one of the favourite destinations for Indian companies to raise equity, had already started taking notice of the new product, he added.

He said the Indian capital market was one of the fastest growing markets in the world and the regulatory standard was much better when compared to a few other countries, including China. ''This is the country that has arrived and marching ahead of several other countries.'' (The QIP route to raise funds had gathered momentum since the introduction of fresh QIP guidelines by SEBI and was expected to be one of the most preferred way of raising resources going ahead.

Investment bankers see this route as a replacement for global depository receipts and foreign currency convertible bonds as the cost of raising funds via QIPs was nearly half the cost of an overseas issue.) Mr Damodaran said the 21st century was India's century and asked the youth of the country to work for the nation's success. The country had witnessed plenty of achievements and those who pass out from elite institutions such as IITs and IIMs which offered quality education should work for the country out of selfishness and not in the interest of the country.

He said the country was witnessing a sense of institutional confidence with a number of Indian companies acquiring foreign companies.

Reliance Industries Chairman and IIM-B Chairman Mukesh Ambani, expressing confidence in the growing number of Indian management graduates making name in foreign countries, said that within the next decade, atleast 20 of the top 100 Fortune companies would have Indian management leaders.

He said the management institutes should besides churning out top class managers also create quality entrepreneurs in the country.

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