LIC turns back on QIPs of private cos

While the queue for qualified institutional placements (QIPs) may be growing longer, sources inform that the country's biggest domestic investor, Life Insurance Corporation of India (LIC) has turned its back on the QIPs of private entities. This is with regard to the biggest institutional investor of the country—LIC. What we understand from our sources is that LIC has taken a call of not investing in the QIPs of private listed companies. They will be sticking only to the public sector units (PSUs) as of now. They prefer the open market route for the same. What we understand is the rational or the reasoning is that LIC is not comfortable with the price discovery through the QIP route. Also, LIC does not want to get into any controversy later, being a public sector unit that whether they were bias towards one entity or not.