Fueling Growth Through Qualified Institutional Placements (QIP)
- Save 6-9 month process of follow-on public offers
- Approvals in 2-3 weeks enables access to urgent capital
- Large ticket size - Rs. 100 crores to Rs. 1,000 crores
- Anchor participation from marquee global & Indian institutions
- Demonstrate compliance rigor to institutions
- Raise confidence on prevailing business outlook
QIPs represent an efficient alternative for listed companies to raise equity without undertaking lengthy public issue processes. As SEBI registered advisors, Neomile Capital offers end-to-end Qualified Institutional Placement (QIP) issuance support.
- Assess operating performance, governance standards, compliance rigour to determine QIP suitability
- Advise on building a strong investment rationale backed by data-driven insights
- Assist with board and shareholder approvals required to undertake QIP
- Drafting and finalizing placement document articulating business outlook, financials, risk factors etc.
- Liaising with BSE, NSE and SEBI for securing requisite approvals smoothly
- Ensuring compliance with guidelines around floor price, allotment etc.
- Identify institutional investors aligned to your growth ambitions and business model
- One-on-one meetings to generate interest – in person and virtual modes
- Undertaking QIP investor roadshows across global financial hubs
- Securing anchor commitments ahead of issuance
- Advising on optimal deal size, pricing and discounts through empirical analysis
- Managing the e-bidding process on exchanges transparently
- Ensuring seamless share allotment and demat credit
- Listing support for freshly issued equity post-closure
FAQs about QIPs
A QIP or Qualified Institutional Placement allows listed companies to raise equity capital from institutional investors via a faster placement process without a follow-on public offer.
Key requirements are prior shareholder approval, no audit qualifications, positive cash accruals, and minimum public float market cap of Rs 1000 crores along with other conditions.
The minimum issue size through QIPs is Rs 100 crores while there is no defined upper limit. Generally, between Rs 500 – 2000 crores are raised through QIP process.
Eligible investors include mutual funds, foreign Institutions, insurance firms, pension funds with minimum total assets of US$ 100 million who can invest in Indian equities. Our relationships span across these leading global and domestic institutions.
While a Follow-on Public Offer route may take 6-9 months, a QIP process allows raising equity in just 2-3 weeks given relaxations in norms allowing swifter approvals.
