Listed companies opt for QIP to raise money

Mumbai: Listed companies have begun using the qualified institutional placement (QIP) route to raise money from the market. In 2014, till date, just four firms have raised Rs 14,000 from the market when compared to Rs 8,000 crores raised in 2013.

QIP is a capital-raising tool, where by the specified securities are issued only to qualified institutional buyers on a private placement basis. “The major advantage is that firms don’t have to go through the lengthy procedural requirements. Every thing is done in 15 days,” pointed out Jagannadham Thunuguntla, head of equity, SMC Global Securities.  

While the state lender, SBI mopped up Rs 8,032 crore from the market, Idea Cellular and Yes Bank raised Rs 3,000 crore each via QIP.