Bengaluru, July 10 -- Many companies, such as the Indian Renewable Energy Development Agency (IREDA), Kaynes Technology, and many other listed Indian firms, raise funds through QIPs. In fact, the PSU banking giant SBI plans to raise Rs 25,000 crore through QIPs. But what is QIP, and what should you know about it as a shareholder? In this article, we will dive deep into the details.

Sometimes, a listed company might need more money to grow, pay off loans, or invest in new projects. One way they raise this money is by issuing new shares to large investors like mutual funds or foreign institutions. This process is called Qualified Institutional Placement (QIP). While it helps the company bring in funds quickly, it can hurt small investors w...