Lakshmi Vilas Bank launches QIP to raise Rs 600 crore
Private sector Lakshmi Vilas Bank launched Qualified Institutional Placement (QIP) to raise over Rs 599.88 crore by issuing 4.25 crore shares in domestic or international markets.
In May 2016, the bank had informed that it will raise funds in one or more public or private offerings in domestic and/or international markets, either in the form of QIP or Qualified Institutional Buyers (QIBs). Besides, the bank said that the funds could also be raised by issuing equity shares through depository receipts, including global depository receipts (GDR) or American Depository Receipts (ADR) or even through foreign currency convertible bonds (FCCBs).
QIP or Qualified Institutional Placement is largely a fund raising tool for the listed companies. It is a process which was introduced by SEBI so as to enable the listed companies to raise finance through the issue of securities to qualified institutional buyers (QIBs).