Quant Mutual Fund Leads Rs.4,200 Crore Adani Enterprises QIP with Nearly Half of the Stake
Quant Mutual Fund has emerged as the largest investor in Adani Enterprises Ltd’s recently concluded Qualified Institutions Placement (QIP) worth Rs.4,200 crore. As per stock exchange filings, Quant Mutual Fund took up nearly 47% of the total issue size, leaving a tight grip as the lead participant in the offering.
The majority portion was allocated to the flagship scheme of the mutual fund, the Quant Small Cap Fund managed to grab 17.41% of the issue. Other funds from the Quant Mutual Fund family also chose large holdings and the Quant ELSS Tax Saver Fund, Quant Active Fund, and Quant Flexi Cap Fund, managed to buy more than 7% of the QIP.
Quant Mutual Fund Invests Rs.2,000 Crore in Adani Enterprises
Quant Mutual Fund has garnered more than 66.6 lakh shares through its various schemes at the issue price of Rs.2,962 per share. This puts the investment at approximately Rs.1,973 crore translating to nearly 0.58% post-issue equity stake in Adani Enterprises.
Apart from the Quant Mutual Fund, the QIP also received prominent players such as Winro Commercial (India) Ltd, which acquired a 12.5% stake at approximately Rs.525 crores and Tree Line Asia Master Fund (Singapore) Pte Ltd invested a 5.95% of the total allotment. SBI Life Insurance Co Ltd also invested by purchasing 5.065% of the total allotment exceeding Rs.212 crores.
The QIP of 1.42 crore equity shares of Adani Enterprises had fetched around Rs.4,200 crore at a price of Rs.2,962 per share. Thus, it was offered at a discount of 4.99% from the floor price of Rs.3,117.475 per share. During the last one year, the share price of Adani Enterprises has risen by more than 27% and the market capitalization of the company has crossed over Rs.3.5 lakh crore.
Post QIP, the paid-up equity share capital of Adani Enterprises has increased from Rs.114 crore to Rs.115.42 crore. Simultaneously, the proceeds from the issue would be used for capital expenditure and retirement of significant debts at group and subsidiary levels.
QIP commenced on 9th October 2024 and closed on 15th October 2024. The mop-up from the issue would now be part of the overall capital-raising plan of the company. On May 2024, the board of Adani Enterprises approved an aggregate fundraising of Rs.16,600 crore or around $2 billion to finance its growth and infrastructure development initiatives that are concentrating on sectors like airports, mining, data centres and green hydrogen.
Earlier in the year, Adani Energy Solutions had also raised about $1 billion through its own QIP, which has seen heavy oversubscription. GQG, Blackrock, Nomura, ADIA, QIA, and SBI MF among other notable domestic mutual funds were some of the key investors in that transaction.
The successful fundraising further underlines Adani Enterprise’s efforts to build up its financial position while driving growth across various sectors.
