According to the company’s stock exchange filing, Quant Mutual Fund emerged as the top participant in Adani Enterprises Ltd’s recently ended Rs 4,200-crore Qualified Institutions Placement (QIP), accounting for roughly 47% of the entire issue size.
According to data on investors who received more than 5% of the QIP issue, Quant Mutual Fund’s flagship programme, the Quant Small Cap Fund, led the charge with a noteworthy allocation of 17.41% of the entire Adani Enterprises issuance.
Other Quant schemes, including the Quant ELSS Tax Saver Fund, Quant Active Fund, and Quant Flexi Cap Fund, each with a share of more than 7%, also made significant investments in the QIP.
The Rs 2,000 crore investment made by Quant Mutual Fund in Adani Enterprises stock
At an issue price of Rs 2,962 per share, 66.6 lakh shares were distributed among Quant Mutual Fund’s different schemes. According to estimations, Quant Mutual Fund has invested more than Rs 1,973 crore. Calculations show that with this investment, Quant Mutual Fund has acquired an approximately 0.58 percent (post-issue) equity holding in Adani Enterprises across several schemes.
Other significant players in the QIP were Tree Line Asia Master Fund (Singapore) Pte Ltd, which received 5.95 percent of the entire allocation, and Winro Commercial (India) Ltd, which acquired a 12.5 percent interest for an estimated Rs 525 crore. Furthermore, SBI Life Insurance Co Ltd was given 5.06 percent of the expected investment of more than Rs 212 crore.
Details of the Adani Enterprises QIP issue
Through this QIP, Adani Enterprises raised almost Rs 4,200 crore by issuing 1.42 crore equity shares at Rs 2,962 each. According to the exchange filing, this represented a 4.99 percent discount, or Rs 155.475, of the floor price of Rs 3,117.475 per share.
Adani Enterprises’ share price has increased by more than 27% in the past year, closing at Rs 3,104.75, matching the 27% returns of the benchmark Nifty. The company’s market value is significantly higher than Rs 3.5 lakh crore.
Adani Enterprises’ intention to raise funds: debt reduction and capital expenditures
After this offering was completed, Adani Enterprises’ paid-up equity share capital rose from Rs 114 crore to Rs 115.42 crore. The money obtained is anticipated to go towards capital projects and debt reduction for the business and its affiliates.
The QIP opened on October 9, 2024, and closed on October 15, 2024. Adani Enterprises’ larger capital-raising plan includes the funding. The company’s board had already authorised a total fundraising effort of Rs 16,600 crore, or around $2 billion, in May. The business has been looking to institutional investors to fund its aspirations for growth and the construction of infrastructure in several industries, such as green hydrogen, data centers, mining, and airports.
Adani Energy Solutions’ QIP, which was nearly six times subscribed to, raised about $1 billion earlier this year. The Adani Energy Solutions QIP participants included local mutual funds, including SBI MF, HDFC MF, and Tata MF, in addition to GQG, Blackrock, Nomura, ADIA, and QIA.
