Abu Dhabi’s IHC increases stake in India’s Adani Enterprises

ABU Dhabi conglomerate International Holding Co (IHC) said on Tuesday it has increased its stake in India’s Adani Enterprises to more than 5 per cent, days after it sold its stakes in two other Adani Group companies.

IHC said its stake increase reflected its belief in Adani Enterprises’ (AEL) ability to “incubate” and scale up airports, data centres and green hydrogen businesses.

“AEL is poised to uniquely capitalise on India’s robust growth journey,” IHC said in a statement.

With the new investments, the value of IHC’s holding in the Adani group’s flagship company now stands at around 140 billion rupees (S$2.3 billion), based on Tuesday’s (Oct 3) closing price of its shares, the Adani Group said separately in a statement.

It said IHC’s increased stake was a “ringing endorsement of the group’s robust capex plans, governance and transparency.”

billionaire Gautam Adani’s business is facing allegations raised by US short-seller Hindenburg Research in January that the apples-to-airports conglomerate engaged in stock manipulation and had amassed significantly high debt.

The Adani Group has denied all allegations. India’s markets regulator is investigating under orders of the Supreme Court.

Last week, IHC said it had agreed to sell its investments in Adani Green Energy and Adani Energy Solutions as part of a strategy to rebalance its portfolio.

Last year, IHC, had invested US$2 billion in three Adani Group companies, which included an investment of 77 billion rupees (S$1.3 billion) in Adani Enterprises for a 3.52 per cent stake.

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Global investors, spooked by Hindenburg’s allegations, have started to return and invest in the port-to-power conglomerate.

Last month, French oil major Total Energies invested US$300 million in Adani Green Energy to form a joint venture for development of wind and solar farms.

And sovereign fund the Qatar Investment Authority (QIA) invested US$500 million for a 2.7 per cent stake in Adani Green Energy.

In August, investment firm GQG Partners bought an 8.1 per cent stake in Adani Power for US$1.1 billion through block trades, Reuters reported. REUTERS