Qualified Institutional Allotment Explained: Meaning, Types, Process, and Use Cases
Qualified Institutional Allotment is a stock-market fundraising method in which a listed company allots securities to large, sophisticated institutional investors rather than to the general public. In Indian markets, this is most commonly seen under the Qualified Institutions Placement, or QIP, framework, and the term is often used loosely for the transaction itself. Understanding it helps you read fundraising announcements, judge dilution, and assess whether the capital raise is likely to strengthen or weaken the company.