It is a capital raising tool wherein a listed company can issue any security (other than warrants)
It is a story that is true in every bull run—everyone wants a piece of it. During the bull run in 2007-08, there was a slew of initial public offerings (IPOs) and new fund offerings. This time, too, when the Sensex is trading around its all-time high of 25,000, there are a string of companies ready to use this window of opportunity to raise money through the qualified institutional placement (QIP) route. Many are slated to announce their issuances soon. According to data with Prime Database, a primary market tracker, in 2014 till May, four companies have raised money, a total of 11,454 crore, through QIPs. In all of 2013, 10 companies had raised 8,075 crore, and 12 companies (4,704 crore) in 2012.