Raising funds through QIP become easy in business world!
Funding has become an important topic in today's business world. Be it a startup or a big company, the path of development becomes difficult without funding. Meanwhile, Qualified Institutional Placement (QIP) has brought a new revolution in the way of raising funds. Through QIP, companies can get funds from investors without any major formalities, which has made the process even simpler and faster. In such a situation, in this report, let us understand in detail what is QIP, how funds are raised through it?
Qualified Institutional Placement (QIP) is a way through which companies can raise money directly from big investors. This means that when a company needs money, it can directly sell its shares to mutual funds, pension funds or foreign investors.
This process started in the year 2006. Under this, the company first decides how many shares it has to sell and what will be their value. Then, it offers its shares to investors in some time. In this way, the company can raise money quickly without a long and complicated process.
QIP also has its advantages. There are fewer formalities in it, which means time and effort are saved. This also helps companies to maintain their value, because shares are sold directly to big investors. In simple language, QIP is an easy and fast way for companies to raise money, so that they can easily fulfill their development plans.
Who can invest in QIP?
Qualified Institutional Placement (QIP) specifically includes those investors who are called "Qualified Institutional Investors"
click and follow Indiaherald WhatsApp channel