New Delhi

Quant Mutual Fund has subscribed to nearly half of Adani Enterprises (AEL) shares. The Adani flagship firm recently concluded its Qualified Institutional Placement (QIP) worth Rs 4200 crores. Fundamentally, a QIP allows listed companies to obtain money without having to provide market authorities with legal documentation. It is common in India and other Southeast Asian nations.

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Quant Mutual Fund, founded by fund manager Sandeep Tandon, has been an 'aggressive' investor in Adani stocks. In 2022, the firm emerged as the only fund house to take aggressive trading calls on the conglomerate.

The aggression faded in 2023 after the Hindenburg report accused the Adani group of malpractices. The focus shifted to other firms, and this has been the framework followed: high-conviction bets based on market moves.

This has propelled Quant MF to become the 17th largest fund house in the country. The firm has also been subject to scrutiny, with market regulator SEBI carrying out search and seizure operation over suspected front-running.

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The QIP was conducted as part of a bigger capital-raising campaign from October 9  until October 15. The board authorised a fundraising strategy earlier this year that called for raising Rs 16,600 crore, or around $2 billion. The startup wants to raise money to expand into important industries like renewable hydrogen, data centres, mining, and airports.

SEBI and Adani have been under regulatory scrutiny following Hindenburg's accusations against the SEBI chief. With domestic and international issues plaguing the conglomerate, Quant MF, along with Winro Commercial and SBI Life Insurance, have enabled Adani to continue on their expansion plans.