Welcome to the latest edition of QIP Roundup,
where we delve into the dynamic world of Qualified Institutional Placements
(QIPs). A listed business can use the QIP capital-raising mechanism to sell
equity shares, fully and partially convertible debentures, or any other product
that can be converted into equity shares to qualified institutional purchasers.
QIPs are a preferred method of obtaining money for
listed firms due to their strong secondary markets and abundant liquidity. 42
QIPs were issued in the first three quarters (April to December) of FY24, with
the financial services industry accounting for ~25% of all those issuances.
- In FY24 (April to December), QIP listings have reached 4.2 times as compared to the entire FY23, with the highest number of QIP listings i.e., 20 occurring in the first half of FY24.