QIP (Qualified institutional placement) & FPO (Follow on public offer)

I n the last blog, we have seen how companies are getting funds from the primary market through IPO but now we will see the different ways for fund generation so we will discuss QIP (qualified institutional placement). Companies can raise funds with help of this QIP. Only qualified institutional buyers can invest in this QIP. When companies need working capital they always prefer to go with QIP which will reduce the time required to raise funds and complications in the documentation. In the past when companies need to improve or expand the business they always used to prefer ADR (American Depository Receipt), GDR (global depository receipt), FCCB (foreign currency convertible bonds). But when they used to get it in foreign currency for repayment they have to pay it in foreign currency and this will always depend upon the exchange rate of foreign currency to give a solution for this problem in 2006 illegal framework is introduced through QIP it has its own advantages like quick t...