New Delhi: International Holding Company PJSC (IHC), an Abu Dhabi-based global strategic investment firm, on Tuesday announced the completion of a Rs 15,400 crore ($2 billion) investment transaction in the Adani Portfolio companies, Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), and Adani Enterprises Limited (AEL), according to the news release by Adani Group.
IHC has funded for several projects of Adani Green Energy, Adani Transmission Ltd, and Adani Enterprises Ltd via preferential allotment route. All the three companies are listed on the BSE and National Stock Exchange (NSE).
Syed Basar Shueb, CEO and MD of IHC, said, “This strategic expansion of our business aligns with IHC's commitment to broadening and diversifying our investment portfolio. There is no doubt that this transaction will directly and positively impact India's overarching ambition for long-term plans for clean energy. The deal represents 4.87 per cent of the total trade between the UAE and India, which has reached $41 billion between 2020 and 2021; the partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector.”
India's total electricity generating capacity is over 390 Gw, while renewables exceed 100 Gw, the statement said.
The government at the United Nations Climate Change Conference last year announced that by 2030 India’s non-fossil fuel capacity would be 500 Gw. IHC's investments will help and speed up Adani Group’s growth plan to supply 45 Gw (9 per cent of India's non-fossil energy) by 2030.
Sagar Adani, executive director of Adani Green Energy, said, “We are delighted to complete this landmark transaction with IHC. We value IHC’s pioneering role as a strategic investor in sustainable energy, healthcare, food, infrastructure and Energy Transition in the UAE. This transaction marks the further strengthening of the India – UAE relationship and highlights the long history of business and trust between our peoples. We share IHC’s strategic vision for India, Middle East, and Africa as we embark on this inter-generational relationship.”
Adani Electricity Mumbai, the distribution arm of Adani Transmission Limited, has legally covenanted targets to raise the renewable energy penetration from 3 per cent in FY21 to 60 per cent by FY27.
IHC’s investment will support Adani Transmission in this transformational journey.
Adani Enterprises, through its wholly owned subsidiary Adani New Industries Limited, will invest $50 billion over the next 9 years forming a new green hydrogen vertical focused on decarbonisation of industrial energy and mobility.