Abu Dhabi's IHC Bets Big on Adani Enterprises, Says It Is Poised to Capitalize on India’s Growth Journey

AHMEDABAD, India — Abu Dhabi-based IHC has increased its stake in the Adani Group’s flagship incubator Adani Enterprises Ltd (AEL) to above 5%, it said on October 3, 2023. IHC has been buying the stock over the past few months from the open market; the value of its holding is more than USD 1.7 billion, as per Wednesday’s closing price.

IHC first invested in the company in May 2022, buying 3.53% for USD 1 billion. The value of this now stands at USD 1.2 billion. The fund increased its holding to 5.04% through open market purchases; this incremental investment is worth more than USD 500 million.

This is more than what the company is expected to fetch from the stake sale in Adani Green Energy and Adani Energy Solutions. It holds 1.26% in Adani Green and 1.41% in Adani Energy Solutions; the value of the stake is around USD 380 million based on Wednesday’s closing.

IHC said the stake sale was part of a portfolio rebalancing strategy, adding that its partnership with Adani would continue. “We write to inform you that International Holding Company has increased its stake in AEL to above 5%. This reflects IHC’s conviction in the incubation model of AEL and we believe in the inherent strength of airports, data centers, green hydrogen, and other verticals being incubated by it. AEL is poised to uniquely capitalize on India’s robust growth journey,” it said.

An Adani Group spokesperson said, “We are delighted with IHC's decision to enhance its investment in Adani Enterprises Ltd, which further validates AEL's standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure and equitable energy transition. We see IHC’s increased stake as a ringing endorsement of our robust capex plans, governance and transparency. This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders.”

Earlier, French major Total Energies invested USD 300 million in Adani Green Energy Ltd (AGEL). Sovereign fund Qatar Investment Authority (QIA) invested USD 500 million for a 2.7% stake in AGEL while GQG Capital Partners invested USD 900 million for 6.4%.