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Abu Dhabi-based IHC increases stake in Adani Enterprises to above 5%

This development follows last week’s announcement by IHC that it had entered a definitive agreement to sell its stake in AGEL and ATL

by Gulf Business

October 3, 2023

Image: IHC/ X

Abu Dhabi-based International Holding Company (IHC) has increased its stake in Adani Enterprises Ltd (AEL) to above 5 per cent.

“This strategic increase reflects IHC’s conviction in the world leading incubation model of AEL and we believe 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,” IHC stated in a regulatory filing on Abu Dhabi Securities Exchange where its shares trade.

#InternationalHoldingCompany has increased its stake in Adani Enterprises Ltd to above 5%. This strategic move reflects IHC’s conviction in AEL’s world-leading incubation model. pic.twitter.com/wIb3dRe9so

— International Holding Company (@ihc__official) October 3, 2023

In April last year, the holding company signed a Dhs7.3bn ($2bn) investment agreement with the Indian conglomerate to infuse primary capital in three portfolio companies – Adani Green Energy (AGEL), Adani Transmission (ATL) and Adani Enterprises (AEL) which all are listed on the Bombay Stock Exchange and National Stock Exchange in India – through the preferential allotment route.

IHC sells stake in AGEL and ATL

However, last week it announced that its subsidiaries – Green Energy Investment Holding and Green Transmission Investment Holding – had entered into a definitive agreement with a buyer to sell off their investments in AGEL and ATL. It did not identify the buyer.

According to the holding company, the move was part of overall portfolio balancing.

In other news, in July, Bloomberg reported that Bain Capital had agreed to buy the 90 per cent stake Gautam Adani’s family holds in an Indian shadow bank, allowing the embattled billionaire to pare down his non-core businesses.

Read: Bain to buy majority stake in Adani Capital, Adani Housing

In January, US-based short seller Hindenburg Research leveled allegations of stock manipulation and accounting fraud against Adani, who denied any wrongdoing.