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QIP is full form of Qualified Institutional Placement which is a fund raising tool, whereby any listed company can issue equities or debentures to Qualified Institutional Buyer (QIB). It is one of the few fastest methods of raising capital for a company.

At the time of present recession, maney companies are in dire consiquences in financial front, and they need quick money, so maney of them are choosing this way of QIP to raise quick money and survive.

Now the investor like us should see that after raising money from this way of QIP, the companey is using for what purpose ? If it is for groath of the companey then it is good and if it is for debt paying then the investor should be carefull from those companies.

Here is the list of some companies, raised money from QIP route and the purpose is also mentioned, so one should take decission for investment.

Suzlon/Indiabull/Unitech – to pay debt.
GMR – Opted not to go for QIP
Dish TV – to grow the companey
Educom – to grow the companey

So be carefull.

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