Qualified Institutional Placement (QIP) is a mechanism used by publicly traded corporations to raise capital by issuing stocks or other equity-convertible instruments to qualified institutional buyers (QIBs) . QIP is a fundraising tool that allows Indian-listed companies to raise capital from domestic markets without the need to submit any pre-issue filings to market regulators. QIPs are a way to issue shares to the public without going through standard regulatory compliance. QIPs are a common method of private placement where the company does not dilute its management stake and also does not need to repeat elaborate paperwork like it did during its IPO.

The only parties eligible to purchase QIPs are Qualified Institutional Buyers (QIBs), which are accredited investors, as defined by the market regulator. QIBs are institutions with expertise and financial power that allows them to evaluate and participate in capital markets, without the legal assurances of a follow-on public offer (FPO) . To be allowed to raise capital through a QIP, a firm must be listed on a stock exchange along with the minimum shareholding requirements as specified in their listing agreement. Also, the company must issue at least 10% of its issued securities to mutual funds or allottees.

QIPs are a lot cheaper in terms of legal fees or raising costs. The process of listing overseas costs more, a price companies were ready to pay, which the QIPs eliminated. Companies that successfully undertake QIPs often experience a positive boost in their share prices, reflecting shareholders positive sentiment. However, this may not always be true. If a company is allotting QIP shares at a big discount to floor price, it does suggest that the demand is not great in which case the stock price may decline.