Quant Mutual Fund Is Biggest Investor In Adani Enterprises QIP Share Issue
Sandeep Tandon's fund has subscribed to nearly half of the Rs 4200 Cr of QIB portion
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Fund manager Sandeep Tandon founded Quant Mutual Fund (MF) has emerged as the largest investor in the most recent fund raising by Adani Enterprises (AEL). As per data, Quant MF has subscribed to 47 percent of AEL's qualified institutional placement (QIP) issue of shares.
AEL is Adani Group's flagship company and has allotted 1.41 crore equity shares in the QIP with a face value of Rs 1. Data shows that Quant Small Cap Fund, the flagship scheme of Quant Mutual Fund, secured a significant allocation of 17.41 percent of the overall AEL offering. In addition, other schemes of Quant MF including Quant ELSS Tax Saver Fund, Quant Active Fund, and Quant Flexi Cap Fund each obtained a huge chunk of shares exceeding 7 percent in the QIP.
Quant Mutual Fund total investment in the AEL QIP stood at approximately Rs 1,973 crores wherein the MF has acquired over 66.6 lakh shares at a price of Rs 2,962 per share. As a result of this investment, Quant Mutual Fund now holds a post-issue equity stake of about 0.58 percent in AEL through its different schemes.
AEL QIP was priced at Rs 2,962 per share, at a 5 percent discount to the floor price of Rs 3,117.47 per share, exchange filings showed. AEL share price on Tuesday had closed near the floor price and fell to Rs 3085 on Wednesday. Other than Quant MF, Winro Commercial (India) Ltd., Tree Line Asia Master Fund (Singapore) Pte Ltd. and SBI Life Insurance were some of the other institutions, to whom more than 5 per cent of the QIP shares on offer have been issued.
The proceeds from this Qualified Institutional Placement (QIP) will be used for both capital expenditures and debt reduction within Adani Enterprises and its subsidiaries. Following this offering, the company's paid-up equity share capital has increased from Rs 114 crore to Rs 115.42 crore.
The QIP took place from October 9 to October 15, 2024, as part of a larger strategy to raise capital. Earlier this year, the board approved a fundraising plan totaling Rs 16,600 crore (approximately $2 billion). The company's goal is to finance expansion in key sectors such as airports, mining, data centers, and green hydrogen.
In a previous QIP in 2024, Adani Energy Solutions successfully raised around $1 billion, attracting significant interest from investors, including GQG, Blackrock, and various domestic mutual funds.
