In a release issued today, Abu Dhabi-based International Holding Company (IHC) announced that it had signed the agreement to invest US$ 2 billion as primary capital in three Adani portfolio companies. The investment will be made through the preferential allotment route.
IHC was founded in 1998 as part of an initiative to diversify and grow non-oil business sectors in the United Arab Emirates. It continues to enhance its portfolio and achieve growth through acquisitions, strategic investments, and business combinations.
Under the agreement signed with Adani Group, IHC will invest US$ 500 million in Adani Green Energy Ltd (AGEL), US$ 500 million in Adani Transmission Ltd (ATL), and US$ 1 billion in Adani Enterprises Ltd (AEL).
The capital will be utilized for pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes.
The transaction is expected to be completed in a month after all necessary approvals are obtained.
Earlier today, the boards of AGEL, ATL, and AEL met and approved the transaction. The investment is subject to shareholder and regulatory approvals and shall comply with SEBI regulations.
Sagar Adani, executive director, AGEL, 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.”
Syed Basar Shueb, CEO and managing director of IHC, 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.”