IHC increases stake in Adani Enterprises

IHC increases stake in Adani Enterprises

The Abu Dhabi-based International Holding Company on Tuesday said it added an increase in its holdings in Adani Enterprises Ltd, days after it sold its stakes in two other Adani Group companies.

We believe that AEL's conviction in the world leading incubation model of AEL is that the inherent strength of airports, Data Centers, Green Hydrogen, and various other verticals being incubated under AEL and that AEL is poised to uniquely capitalise on India's robust growth journey. The IHC is still exploring unique investment opportunities in India, with the aim to maximise stakeholders' return, IHC said in a press release. On Tuesday, Adani Enterprises' scrip on the BSE closed at Rs.2.390, down 0.9% at Rs.2,390 a day earlier.

The value of IHC's holding in the Adani group's prominent company now stands at about 14,000 crore, based on Tuesday's closing price of its shares, the Adani Group said in a statement.

Last month, IHC said in a stock exchange notice that its subsidiaries have entered an agreement with a buyer to 'dispose of' its foreign direct investment in Adani Green Energy Ltd and Adani Energy Solutions.

As part of IHC's 'portfolio rebalancing strategy', the move would see its subsidiaries, Green Energy and Green Transmission, offload their 1.26 share in Adani Green and 1.41% share in Adani Energy Solutions, respectively.

Overseas investors such as the IHC have backed Adani in the face of allegations raised in January by US short-seller Hindenburg Research that the apple-to-airports conglomerate engaged in stock manipulation and had amassed significantly high debt.

The Adani Group has denied all allegations and the Indian market watchdog is investigating the matter under the advice of the Supreme Court.

In April 2022, IHC invested $600 million each in the renewables arm of Adani Green Energy and power company Adani Transmission and another $1 billion in the group's flagship Adani Enterprises.

IHC chief executive Syed Basar Shueb said the decision to back Adani was a long-term investment in India.

Last month, totalenergies of France invested $300 million in Adani Green Energy, a joint venture for wind and solar farms, the French oil giant said in a statement.

The Qatar Investment Authority made $500 million in a bid to buy Adani Green Energy.

In August, investment firm GQG Partners bought Adani Power for $1.1 billion through block trades.