Abu Dhabi's International Holding To Invest $2 Billion In Adani Group’s Green Portfolio

IHC, which was set up in 1998, will invest Rs 3,850 crore in Adani Green Energy, Rs 3,850 crore in Adani Transmission, and Rs 7,700 crore in Adani Enterprises

The transaction is expected to be completed in a month, after approvals from shareholders and regulators. Image: AFP

New Delhi: The Abu Dhabi-based International Holding Company (IHC) will invest $2 billion (Rs 15,400 crore) in three companies, Adani Green Energy (AGEL), Adani Transmission (ATL), and Adani Enterprises (AEL), owned by billionaire Gautam Adani.

According to the news release by Adani Group, the boards of all the three firms on Friday approved IHC’s investment through the preferential allotment route. The investment, however, is subject to shareholders and regulatory approvals.

IHC, which was set up in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE, will invest Rs 3,850 crore in AGEL and Rs 3,850 crore in ATL.

It will invest Rs 7,700 crore in AEL. The transaction is expected to be completed in a month, after approvals.

The Adani companies will use the capital for expanding business, strengthening balance sheets, and for general corporate purposes.

Sagar Adani, executive director, AGEL, “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,” while adding, “This is a landmark transaction and marks a start of a wider relationship between the Adani Group and IHC and attracting further investment from UAE into India.”

AGEL, ATL, and AEL are market leaders in their sectors and form the Adani Group’s green energy portfolio. This investment is testament to the IHC’s and the Adani Portfolio’s shared vision and commitment of investing in sustainable companies that are leading the charge in energy transition.

Syed Basar Shueb, chief executive officer and managing director of IHC, said his company is committed to long-term investments in India.

“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,” he said.

The stock of Adani Green on Friday was up 7 per cent to Rs 2,323 as the deal with IHC was announced.