Abu Dhabi’s IHC to invest Dhs7.3bn in India’s Adani Group

Abu Dhabi’s International Holding Company has signed a Dhs7.3bn ($2bn) investment agreement with Indian conglomerate Adani Group, to infuse primary capital in three Adani 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.

While the boards of AGEL, ATL and AEL have approved the transaction, the investment is subject to shareholder and regulatory approvals and shall comply with the Securities and Exchange Board of India’s (SEBI) regulations.

Sagar Adani, executive director, AGEL said: “We are delighted to commence this inter-generational relationship with IHC. We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy, and energy transition. This is a landmark transaction and marks a start of a wider relationship between Adani Group and IHC and attracting further investment from UAE into India.”

IHC is committed to its vision to build a sustainable future by driving innovation on a global scale in the renewable green energy sector. IHC made significant strides towards achieving this, investing AED 7.3 billion in Adani Group’s green portfolio.https://t.co/ZTwAYYHrYv pic.twitter.com/77SribJmaz

— International Holding Company (@ihc_ae) April 8, 2022

The three companies – AGEL, ATL and AEL – span the Adani Group’s green portfolio, and have core aspects of ESG woven into their operations.

Syed Basar Shueb, CEO and managing director of IHC, said: “This will be a long-term investment in India as the country is driving much innovation globally, including the green energy sector. The opportunity to earn a compelling return on investment in green energy has never been greater. We are confident that Adani companies will play a significant role in unleashing India’s total green energy potential, reflecting positively on our shareholders’ commitment.”

IHC is included in the FTSE ADX 15 Index (FADX 15), which represents the top 15 largest and most liquid companies on the Abu Dhabi Securities Exchange (ADX). In 2021, the company’s total assets reached Dhs87bn.

IHC will invest Dhs1.83bn ($500m) in AGEL, Dhs1.83bn ($500m) in ATL and Dhs3.67bn in AEL ($1bn), in compliance with SEBI regulations. The transaction is expected to be completed in a month after all necessary approvals are obtained.  The capital will be utilised for pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes.