The document discusses qualified institutional placement (QIP), a capital raising tool used primarily in India and parts of southern Asia whereby a listed company can issue securities convertible to equity shares to qualified institutional buyers. It introduces QIP as a mechanism introduced by SEBI in 2006 to allow Indian companies to raise funds domestically from expert institutional investors rather than relying on foreign capital, and provides details on the QIP process, eligible investors, benefits over other funding options, and examples of recent QIP fundraisings.

2. Qualified institutional placement (QIP) is a capital-
raising tool, primarily used in India and other parts of
southern Asia, 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).
Source: Wikipedia

3. • The Securities and Exchange Board of India (SEBI) introduced QIP on May 8, 2006.
• To prevent listed companies in India from developing an excessive dependence on
foreign capital.
• Prior to the innovation of the qualified institutional placement, Indian companies were
accessing international funding via issuing securities, such as American depository
receipts (ADRs), in outside markets.
• QIP guidelines were introduced to encourage Indian companies to raise funds
domestically instead of tapping overseas markets.

4. • Registered with SEBI
• Expert Class of Investors
• Covers wide range of Institution:-
• Foreign institutional investor
• Indian mutual fund
• PFI
• Indian banks
• Indian Insurance Companies

5. • Time saving: QIBs can be raised within short span of time rather than in FPO, Right Issue takes
long process.
• Rules and regulations: In a QIP there are fewer formalities with regard to rules and regulation,
as compared to follow-on public issue (FPO) and rights Issue.
• Cost-efficient: The cost differential vis-à-vis an ADR/GDR or FCCB in terms of legal fees, is huge.
Then there is the entire process of listing overseas, the fees involved. It is easier to be listed on
the BSE/NSE vis-à-vis seeking a say Luxembourg or a Singapore listing.
• Lock-in: It provides an opportunity to buy non-locking shares and as such is an easy mechanism
if corporate governance and other required parameters are in place.

6. • Issuing company must be Listed
• Atleast 2 allottee if the lot size of securities is upto Rs. 250 crore.
• Atleast 5 allottee if the lot size of securities exceeds Rs. 250 crore.
• No individual allottee is allowed to have more than 50% of the total amount issued.
• No issue is allowed to a QIB who is related to the promoters of the company.

7. Yes Bank hires Goldman Sachs for $1 billion QIP (Tue, Jun 21 2016. 01 24 AM IST / live mint)
[In June 2014, the bank had raised $500 million (Rs2,900 crore) through a QIP. Then Yes Bank had
hired Deutsche Bank AG, HSBC Holdings Plc, Motilal Oswal Securities Ltd, JM Financial Ltd, UBS AG and
Goldman Sachs for the fund raising.]
ADB, IFC, GIC queue up for IDBI QIP ( The financial express july 2 , 2016)
[State-run IDBI Bank will likely complete its proposed Rs 3,771-crore qualified institutional
placement (QIP) to potential investors such as Asian Development Bank and International Finance
Corporation by September end if markets remain stable, a senior government official said on Friday.]
Hester Biosciences gains on fund raising plan via QIP ( june 26, 2016, mint)
Hester Biosciences has rallied 9% to Rs 777 on the BSE after the pharmaceutical company said that
it is planning to raise funds by issuing shares via qualified institutional placement (QIP).

8. JSW Steel seeks to raise up to $2 billion via foreign currency bonds
JSW Steel will also seek a nod to raise up to Rs4,000 crore through equity shares and
debentures through a QIP issue.
United Bank to raise Rs 1,000 cr via equity issue to QIBs:-- State-owned United Bank
of India on June 29 said it plans to raise Rs 1,000 crore through issuance of equity to
qualified institutional buyers (QIB).
Syndicate Bank plans to raise Rs 4,300 cr: Giving details of its annual general meeting,
the bank further said it has also plans to raise Basel-III complaint additional tier-I bonds
up to Rs 1,000 crore and tier-II bonds up to Rs 1,600 crore.