major effect of QIP on stock price:
Just trying to understand the major effect of QIP on stock price, I came across following major points. Hope it will help other new investors as well:
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Dilution: Issuing new shares can dilute the value of existing shares, which might lead to a decrease in stock price.
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Market Perception: If the QIP is oversubscribed, it indicates strong investor confidence, which can positively impact the stock price.
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Use of Proceeds: The impact also depends on how the raised funds are used. If used for growth initiatives or debt reduction, it can lead to positive market sentiment and a rise in stock price.
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Discounted Pricing: If shares are issued at a discount, it might signal lower demand, potentially causing the stock price to fall.
feel free to add if any other major impacts are left.
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