Abu Dhabi-based International Holding Company PJSC (IHC) has signed an agreement to invest $2 billion (AED 7.3 billion) as primary capital in Indian multinational conglomerate Adani Group’s three portfolio companies, including Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL), and Adani Enterprises Ltd (AEL).
The Adani Group’s three portfolio firms are all listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.
Earlier today, the boards of AGEL, ATL, and AEL met and approved the transaction. The investment is subject to shareholder and regulatory approvals and will comply with the regulations of the Securities and Exchange Board of India (SEBI).
IHC will invest $500 million (AED 1.83 billion) in AGEL; up to $500 million (AED 1.83 billion) in ATL; and an additional $1 billion (AED 3.67 billion) in AEL, in compliance with SEBI regulations.
The transaction is expected to be completed in a month after all necessary approvals are obtained.
The primary capital will be utilised to pursue the growth of the respective businesses, to further strengthen their balance sheet, and for general corporate purposes.
The executive director of AGEL, Sagar Adani, 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.”
The three Adani Group companies – AGEL, ATL and AEL – are market leaders in their business sectors and span the Adani Group’s green portfolio.
Every one of these three businesses has the core aspects of ESG woven into their operations.
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.
The CEO and managing director of IHC, Syed Basar Shueb, 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.”
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