Qualified institutional placement (QIP) is a capital-raising tool, primarily used in India, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer (QIB).
Apart from preferential allotment, this is the only other speedy method of private placement whereby a listed company can issue shares or convertible securities to a select group of persons. QIP scores over other methods because the issuing firm does not have to undergo elaborate procedural requirements to raise this capital.
Read more about Qualified Institutional Placement: Why Was It Introduced?, What Are Some of The Regulations Governing A QIP?, Who Can Participate in The Issue?, Qualified Institutional Buyers (QIBs), QIPs in India and The US, The Difference, Benefits of Qualified Institutional Placements
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