Who are Qualified Institutional Bidders?

Qualified institutional bidders (QIB’s) are public financial institutions, mutual funds, commercial banks, and foreign Portfolio Investors who are required to register with SEBI. Minimum 50 percent of the Offer Size is for QIB’s.

The allotment basis is proportionate as the QIBs are generally the small investors of the mutual fund, pension schemes, and ULIP schemes of the insurance company. QIB’s are not allowed to withdraw their bids after the IPO is closed.