WHAT IS A QUALIFIED INSTITUTIONAL PLACEMENT (QIP)?SPICEJET RAISES Rs 3,000 Crores THROUGH QIP

 

SPICEJET RAISES Rs 3,000 Crores THROUGH QIP

 (QUALIFIED INSTITUTIONAL PLACEMENT) AND PAID ITS

 GST DUES , EMPLOYEE’S SALARY ARREARS AND

 CLEARANCES OF ALL ITS TDS.

 

WHAT IS A QUALIFIED INSTITUTIONAL PLACEMENT (QIP)?

1.    A qualified institutional placement (QIP) is a way for listed companies to raise capital without having to submit legal paperwork to market regulators.

2.    Qualified institutional buyers (QIBs) are the only entities allowed to purchase QIPs

ADVANTAGES OF QIP

3.    The use of QIPs saves time because the issuance of QIPs and the access to capital are far quicker than through a follow-on public offer (FPO).

4.    QIPs have far fewer legal rules and regulations to follow, making them not only faster but also more cost-efficient.

5.    Additionally, there are fewer legal fees and no cost of listing overseas.

HOW SPICEJET USES QIP TO COME OUT OF ITS

 FINANCIAL TROUBLE

6.    Low-cost airline SpiceJet recently raised Rs 3,000 crores through a Qualified Institutional Placement (QIP), attracting various institutional investors, including Goldman Sachs and Tata Mutual Fund.

7.    SpiceJet informed that it cleared all its Goods and Services Tax (GST) dues and  all its employee salary outstanding  and TDS  Rs 220 Crores on its employee’s salary outstandings.

8.    This will help the SpiceJet to manage its financial discipline and to comply with the regulatory compliance.

9.    SpiceJet announced that it had resolved its dispute with Engine Lease Finance Corporation through an amicable settlement. ELFC had previously claimed $16.7 million, and  settlement has been reached by SpiceJet now.

 

OTHER COMPANIES WHICH USED QIP FUNDING

 

10.                    Bajaj Finance Ltd led the biggest QIP, raising around Rs 8,800 crore. Union Bank of India and Bank of India followed, taking home approximately Rs 5,000 crore and Rs 4,500 crore.

 

11.                    Among companies, Suzlon Energy had the QIP, securing around Rs 2000 crore. Sheela Foam (Rs 1200 crore), Apar Industries Ltd, Blue Star Ltd, and Ramkrishna Forgings Ltd (Rs 1000 crore each) were also noteworthy.

 

If your company needs QIP funding, please contact

R V Seckar  Practicing Company Secretary ,

 7904719295,

rvsekar2007@gmail.com