Quant MF Becomes Largest Investor in Adani Enterprises’ Rs 4,200 Crore QIP, Acquires 47% of Shares

Quant MF Becomes Largest Investor in Adani Enterprises’ Rs 4,200 Crore QIP, Acquires 47% of Shares

Quant Mutual Fund has emerged as the top investor in Adani Enterprises’ recent Qualified Institutional Placement (QIP), which raised Rs 4,200 crore. The fund acquired 47% of the total shares offered, solidifying its position as a significant stakeholder in the company.

Quant’s flagship scheme, the Quant Small Cap Fund, was the most active, purchasing 17.41% of the QIP shares. Other funds under the Quant umbrella, including the ELSS Tax Saver Fund, Active Fund, and Flexi Cap Fund, also made significant investments, each securing more than 7% of the issue. In total, Quant Mutual Fund invested approximately Rs 1,973 crore, obtaining over 66.6 lakh shares at an issue price of Rs 2,962 per share. This gives the fund a post-issue equity stake of 0.58% in Adani Enterprises across its various schemes.

Other notable participants in the QIP included Winro Commercial (India) Ltd, which acquired a 12.5% stake for Rs 525 crore, and Tree Line Asia Master Fund (Singapore) Pte Ltd, with a 5.95% share. SBI Life Insurance Co Ltd also joined the QIP, securing 5.06% for an estimated Rs 212 crore.

The QIP, which ran from October 9 to October 15, 2024, involved issuing 1.42 crore equity shares at a price of Rs 2,962 each, representing a 4.99% discount from the floor price of Rs 3,117.475. These funds will be directed towards capital expenditures and reducing debt within Adani Enterprises and its subsidiaries. As a result of the offering, the company’s paid-up equity share capital increased from Rs 114 crore to Rs 115.42 crore.

This QIP is part of a broader capital-raising strategy by Adani Enterprises, which had earlier approved a total fundraising plan of Rs 16,600 crore. The company plans to use the raised capital to expand its operations in key sectors like airports, mining, data centers, and green hydrogen. Earlier this year, Adani Energy Solutions raised around $1 billion through a similar QIP, attracting notable investors such as GQG, Blackrock, and various domestic mutual funds.