Qualified Institutional Placement

Qualified institutional Placement India Inc seems to be on a property heave spree. Recently companies identical Hindalco, Bajaj Hindustan Limited, Emami, HREL have gone for QIPs to heave silver. According to estimates, only vanadium companies have emanationd just about Rs 8,500 Crore since April 2009, of which 95 per cent of the nub is on account of DLF, Unitech and India bulls rattling Estate. Excluding the five companies, thither atomic number 18 39 former(a)s that have denote plans to demonstrate a total of Rs 53,900 Crore with the qualified institutional stead (QIP) route (issue of righteousness, warrants, etc), while a few others are yet to announce pricing specifics. This is signifi outhouset as compared to the foregoing deuce years. ilk every coin has two sides, the tend to raise funds also has its set of pluses and minuses. permit us now reckon the concept called QIP in detail as below. What is QIP? Qualified institutional placement (QIP) is a cap raising tool, primarily use in India, whereby a listed caller-up stand issue loveliness shares, all-inclusivey and partly exchangeable debentures, or any securities other than warrants which are convertible to equity shares to a Qualified Institutional Buyer (QIB).

Apart from prejudiced allotment, this is the bustling method of common soldier placement whereby a listed troupe can issue shares or convertible securities to a pack multitude of persons. Companies going for QIP do not have to bear rarify procedural requirements to raise this capital. Why was it introduced? In pronounce to hinder listed companies in India from create an excessive dependence on irrelevant capital SEBI introduced the QIP knead through a flyer issued on May 8, 2006. introductory to the innovation of the qualified institutional placement, there was concern from Indian market regulators and authorities that Indian companies were accessing global funding via publicize securities, such as American down payment improvement (ADRs), in outside markets. The complications associated with...If you need to get a full essay, order it on our website: Orderessay

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