Videocon to launch first QIB issue

Consumer durable and oil exploration firm Videocon Industries will become the first company in India sell its share exclusively to the big institutional investors.

In a statement to the stock exchanges, Videocon said it has called an extra-ordinary general meeting EGM of its shareholders to place equity shares with qualified institutional buyers QIB under the recent guidelines issued by Securities Exchange Board of India Sebi for 8220;qualified institutional placement.8221;

Sebi had announced that any listed company can come out with a follow-on issue without submitting a prospectus to it. Under the new law, the small investors were kept out of any follow-on issues as merchant bankers said that this increased the cost of issue.