10.11What is QIB?
1What is it?
Qualified Institutional Buyers (QIBs): mutual funds, banks, insurance companies, FPIs, pension funds. They usually get 50% of a book-built IPO.
2Why does it exist?
Their demand signals professional confidence. High QIB subscription is often watched closely.
3Quick revision
- Institutions.
- Usually 50% of issue.
- Strong QIB demand is a signal (not a guarantee).
4Knowledge check
Q1. Name two QIBs.Show answer
Mutual funds, insurance companies, banks, FPIs.
Q2. Typical QIB share?Show answer
50%.
Q3. Does high QIB subscription guarantee gains?Show answer
No.