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Qualified Institutional Buyer (QIB)
QIBs are institutions SEBI considers sophisticated enough to evaluate investments, such as mutual funds, insurers, pension funds and registered foreign investors. IPOs reserve a portion of shares for them.
Why It Matters
QIB demand is watched closely because these investors do detailed research before bidding.
In India
Loss-making companies can list in India only if at least three-quarters of their IPO goes to QIBs.