Abu Dhabi IHC raises stake in India’s Adani Enterprises.
Abu Dhabi conglomerate International Holding Co (IHC) (IHC.AD) said it has increased its stake in India’s Adani Enterprises (ADEL.NS) to more than 5%, days after it sold its stakes in two other Adani Group companies.
IHC said its stake increase reflected its belief in Adani Enterprises’ (AEL) ability to “incubate” and scale up airports, data centres and green hydrogen businesses.
IHC said in a statement:
AEL is poised to uniquely capitalize on India’s robust growth journey.
With the new investments, the value of IHC’s holding in the Adani group’s flagship company now stands at around 140 billion rupees ($1.68 billion), based on Tuesday’s closing price of its shares, the Adani Group said separately in a statement.
It said IHC’s increased stake was a “ringing endorsement of the group’s robust capex plans, governance and transparency.”
Billionaire Gautam Adani’s business is facing allegations raised by U.S. short-seller Hindenburg Research in January that the apples-to-airports conglomerate engaged in stock manipulation and had amassed significantly high debt.
The Adani Group has denied all allegations. India’s markets regulator is investigating under orders of the Supreme Court.
Last week, IHC said it had agreed to sell its investments in Adani Green Energy (ADNA.NS) and Adani Energy Solutions (ADAI.NS) as part of a strategy to rebalance its portfolio.
Last year, IHC, had invested $2 billion in three Adani Group companies, which included an investment of 77 billion rupees ($926 million) in Adani Enterprises for a 3.52% stake.
INVESTOR RETURN
Global investors, spooked by Hindenburg’s allegations, have started to return and invest in the port-to-power conglomerate.
Last month, French oil major Total Energies invested $300 million in Adani Green Energy to form a joint venture for development of wind and solar farms.
And sovereign fund the Qatar Investment Authority (QIA) invested $500 million for a 2.7% stake in Adani Green Energy.
In August, investment firm GQG Partners bought an 8.1% stake in Adani Power (ADAN.NS) for $1.1 billion through block trades, Reuters reported.
Abu Dhabi’s IHC raises stake in India’s Adani Enterprises, Mumbai, October 3, 2023
