Zomato's stock fell 1.35 per cent on Thursday to close at Rs 270. The company told the exchange that an important board meeting will be held on October 22.

In the information released on the exchange, the company said that it will consider raising funds through QIP in the board meeting.

QIP stands for qualified institutional placement. Companies use QIP to raise funds from the domestic market. QIP does not require approval from the market regulator SEBI. For QIP, the company decides the share price as per the rules. The price of QIP cannot be less than the average price of the share for 2 weeks. Shares can be issued to insurance companies and financial institutions through QIP. Shares can also be issued to foreign institutional investors and venture capital funds. QIP companies have an easy and economical way to raise funds. Investors also benefit from better pricing of shares