 "Quant MF largest investor in Adani Enterprises' QIP, buys 47% of shares")
Quant Mutual Fund has emerged as the largest investor in Adani Enterprises' recent Qualified Institutions Placement (QIP), which raised Rs 4,200 crore. They acquired nearly 47% of the total shares offered.
Key Details:
Major Stake: The flagship scheme, Quant Small Cap Fund, was particularly active, purchasing 17.41% of the QIP shares. Other funds from Quant, like the ELSS Tax Saver Fund, Active Fund, and Flexi Cap Fund, also invested heavily, each taking more than 7% of the issue.
Investment Amount: In total, Quant Mutual Fund invested around Rs 1,973 crore, securing over 66.6 lakh shares at an issue price of Rs 2,962 per share.
Equity Stake: This investment gives Quant Mutual Fund a post-issue equity stake of approximately 0.58% in Adani Enterprises across its various schemes.
Other major participants in the QIP included Winro Commercial (India) Ltd, with a 12.5% stake for an estimated Rs 525 crore, and Tree Line Asia Master Fund (Singapore) Pte Ltd, which secured 5.95% of the allotment. SBI Life Insurance Co Ltd also participated, taking a 5.06% allocation for an estimated Rs 212 crore.
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Adani Enterprises successfully raised about Rs 4,200 crore through a Qualified Institutions Placement (QIP), issuing 1.42 crore equity shares at a price of Rs 2,962 each. This price was set at a 4.99% discount from the floor price of Rs 3,117.475.
A Qualified Institutions Placement (QIP) is a method used by companies to raise funds by issuing equity shares to qualified institutional buyers (QIBs). QIPs are primarily aimed at institutional investors, such as mutual funds, insurance companies, and pension funds, rather than retail investors. The shares in a QIP are typically issued at a discount to the current market price, encouraging institutional investors to participate. Companies can use the funds raised for various purposes, including capital expenditure, debt repayment, or other corporate activities.
Key Details:
Stock Performance: Over the past year, Adani's share price has increased by over 27 per cent. This performance is on par with the benchmark Nifty index, which also saw a 27% return. The company’s market capitalization now exceeds Rs 3.5 lakh crore.
The funds raised from this QIP will be utilized for capital expenditures and to reduce debt within Adani Enterprises and its subsidiaries. After this offering, the company's paid-up equity share capital increased from Rs 114 crore to Rs 115.42 crore.
The QIP, which ran from October 9 to October 15, 2024, is part of a broader strategy to raise capital. Earlier this year, the board had approved a total fundraising plan of Rs 16,600 crore (around $2 billion). The company aims to finance its expansion in sectors like airports, mining, data centers, and green hydrogen.
P Earlier in 2024, Adani Energy Solutions raised approximately $1 billion through a QIP that was highly oversubscribed. Notable investors included GQG, Blackrock, and various domestic mutual funds.