Share Investment; Does the QIP Trend Signal Dull Times Ahead?


Does the QIP Trend Signal Dull Times Ahead?

There are many ways to gauge investor sentiments. Valuations, the number & value of deals, and IPO activity are just some of the many ways to do so.Qualified Institutional Placement (QIP) activity is another way to gauge the same. 

And from this angle, market sentiments are fairly dull. 


A QIP is an equity raising mechanism for companies. QIPs tend to be a faster way to raise capital as the dealing happens with a few investors.  only institutions in this case.

And this is why companies prefer this route - because of its convenience and less resource requirements when compared to other methods of raising equity.

Despite it being the preferred route, action on this front has pretty much diminished in recent times.

Especially when compared to the post elections phase when expectations were set sky high.

However, with actual earnings being way off the mark from estimates, the markets have been volatile in recent times leading to very little action in the QIP space.
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