After exiting two Adani firms, IHC raises stake in Adani Enterprises – ET Infra

NEW DELHI: Days after selling its stake in two of Adani group companies, Abu Dhabi conglomerate International Holding Company (IHC) on Tuesday said it has raised stake in the group’s flagship Adani Enterprises Ltd to above 5 per cent. IHC raised its stake from 4.98 per cent to 5.04 per cent through open market purchase, according to a stock exchange filing by AEL.

IHC separately said, “This strategic increase reflects IHC’s conviction in the world leading incubation model of AEL.”

Stating it has increased its stake in AEL to above 5 per cent, IHC said it believes that “the inherent strength of airports, data centres, green hydrogen, and various other verticals being incubated under AEL and that AEL is poised to uniquely capitalise on India’s robust growth journey.”

“IHC continues to explore unique investment opportunities in India with the goal to maximise stakeholders’ return,” it added.

Last week, IHC had stated that as part of a “portfolio rebalancing strategy” it will sell its 1.26 per cent stake in Adani Green Energy Ltd and 1.41 per cent stake in Adani Energy Solutions.

IHC had last year invested about USD 1 billion to take a 3.52 per cent stake in AEL. It steadily increased the stake to 4.98 per cent and now to 5.04 per cent.

IHC’s 5 per cent holding in AEL is wroth about Rs 14,000 crore as per Tuesday’s closing price.

The stake increase comes after a string of recent large-scale investments in the Adani Group entities from the likes of Qatar Investment Authority (QIA), TotalEnergies (TTE), and GQG Partners (GQG). This is the largest infra investment participation programme, with USD 9 billion raised over a short span of four years.

Commenting on the development, Adani Group spokesperson said, “We are delighted with IHC’s decision to enhance its investment in Adani Enterprises Ltd (AEL), which further validates AEL’s standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure and equitable energy transition.

“We see IHC’s increased stake as a ringing endorsement of our robust capex plans, governance and transparency. This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders.”

Overseas investors such as the IHC have backed Adani in the face of allegations of stock manipulation and accounting fraud levelled by US short-seller Hindenburg Research in January. The Adani Group has denied all allegations.

The report triggered a sell-off that at one point knocked USD 150 billion off the combined stock market value of Adani’s 10 listed companies. Shares have since recovered some of their losses.

In April 2022, IHC had invested Rs 3,850 crore each in Adani Green and Adani Transmission.

  • Published On Oct 4, 2023 at 01:02 PM IST

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