Quick Definition

Qualified Institutional Placement (QIP) is a capital-raising tool whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible to equity shares to a qualified institutional buyer.

Examples

• 1A technology company raising funds to expand its operations through a QIP by issuing new shares to institutional investors.
• 2A pharmaceutical firm using QIP to finance the acquisition of a smaller competitor, issuing convertible debentures to qualified institutional buyers.
• 3An automotive manufacturer issuing equity shares through a QIP to fund research and development for new electric vehicle technologies.

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