QIP came on 9th oct then price was around 0.97rs on HIGH, QIP roundoff 1rs. Also QIP came at Rs 1 with 0.05 premium.
However to answer you –
Yes, a Qualified Institutional Placement (QIP) can sometimes be priced above the current market price, though it typically happens under specific circumstances.
Here’s a bit more detail about why that might occur:
- Investor Demand: If there is strong demand for the QIP from institutional investors, the company might price the shares at a premium to the current market price. This could happen when the market perceives that the company is undervalued or has strong growth potential, so institutional investors are willing to pay a higher price.
- Strategic Purpose: Sometimes, a company may intentionally price a QIP above the market price to signal confidence in its future prospects or to minimize dilution. If the company expects positive developments, such as a new product launch or an acquisition, it might price the QIP above the market to align with these expectations.
- Current Market Conditions: In a bull market or when there is an upswing in investor sentiment toward a particular sector or industry, companies may price their QIPs above the prevailing market price to take advantage of favorable conditions.
However, in most cases, a QIP is priced at a discount to the market price to make it more attractive to institutional investors and ensure the placement is successful. This discount compensates investors for the short-term market risk they are taking by buying the shares before the market reacts to the news.
Ultimately, whether a QIP is priced above or below the market price depends on factors such as the company’s financial condition, investor sentiment, and the specific details of the offering.
As for your other question, only the investors know why they are selling. However, they have only reduced their holdings, which suggests they may have found a better opportunity elsewhere. (Who knows?)
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