What is QIB Application?

QIB application in an IPO made by a Qualified Institutional Buyer (QIB) to subscribe to shares offered.

Key Points about QIB Applications:

• Reserved Quota: In most mainboard IPOs, 50% of the issue size is reserved for QIBs.
• Confidence Indicator: A high number of QIB applications shows strong institutional trust in the company’s business, governance, and growth prospects.
• Excludes Anchor Investors: QIB applications are separate from anchor investor applications, which are made a day before the IPO opens.
• Impact on Retail Sentiment: When QIBs apply in large numbers, retail and HNI investors gain more confidence in applying.