QIP Qualified Institutional Placement (QIP-QIP) is a term used in the Indian capital markets to describe a placement of securities to “qualified institutional buyers” (QIBs) through a Qualified Institutional Placement (QIP) route. This is a specific category of exempt offer made in India under the Securities and Exchange Board of India (SEBI) Regulations for Qualified Institutional Placement.

Key Features of QIP-QIP:

• Exempt Offer: QIP-QIP is an exempt offer, which means that it does not require the issuer to go through the formal process of filing a prospectus with the SEBI.
• Qualified Institutional Investors: QIPs are open only to QIBs, which include institutional investors such as mutual funds, pension funds, insurance companies, and other specified entities.
• Specific Securities: QIP-QIP is primarily used for the placement of debt securities, such as government bonds and corporate bonds, although it can also be used for other securities, such as equity shares.
• Minimum Investment: There is a minimum investment requirement for QIPs, generally $2 million or its equivalent in Indian rupees.
• Price Determination: The price of securities in a QIP is determined through a book-building process, where investors submit their bids and the issuer determines the final price based on the highest bid.
• No Ceiling on Price: Unlike the public issue price, there is no ceiling on the price of securities in a QIP.

Purpose of QIP-QIP:

• Enable Large-Ticket Investments: QIP-QIP allows institutional investors to invest large sums of money in the Indian capital markets.
• Facilitate Access to Debt Securities: QIP-QIP provides a convenient way for QIBs to access a wide range of debt securities issued in India.
• Reduce Costs: QIP-QIP can help issuers reduce the costs associated with raising funds compared to traditional public offerings.

Overall, QIP-QIP is a specialized placement mechanism used in the Indian capital markets to facilitate large-ticket investments by QIBs.