Corp India’s fascination: QIPs

India Inc is flocking to the QIP (qualified institutional placement) market, finding it cheaper and a faster way to mobilise funds. Listed companies are increasingly banking on big institutional investors — but at the cost of retail investors who are not in the reckoning for QIPs. The companies raised Rs 21,700 crore through QIP placements in 2007 as against Rs 3,900 crore in the previous year, a rise of 456 per cent, according to figures compiled by Bloomberg Asia-Pacific League Tables. This is almost equivalent to the amount that companies raised through public issues in 2006. The QIP route which was opened up by the market regulator Sebi two years ago has gained acceptance — and fast at that.

The Indian Express
http://www.indianexpress.com/story/255897.html