Abu Dhabi-based International Holding Company to invest $ 2 billion in Adani Group’s green portfolio
Ahmedabad, April 8, 2022
The Abu Dhabi-based International Holding Company PJSC (IHC) will invest $ 2 billion as primary capital in three Adani portfolio companies – Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL) and Adani Enterprises Ltd (AEL) – which are all listed on Bombay Stock Exchange (BSE) and National stock Exchange (NSE) in India, through the preferential allotment route.
Earlier today, the boards of AGEL, ATL and AEL met and approved the transaction, a press release from the Adani Group said.
The investment is subject to shareholder and regulatory approvals and shall comply with SEBI regulations, it said.
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 The Adani Group and IHC and attracting further investment from the UAE into India.”
The three Adani 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 release said.
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."
IHC will invest INR 3,850 crore in AGEL, INR 3,850 crore in ATL and INR 7,700 crore in AEL, in compliance with SEBI regulations. The transaction is expected to be completed in a month, after all necessary approvals are obtained.
"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 release added.
IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to Abu Dhabi’s Vision 2030, the ADX-listed company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates. IHC is included in FTSE ADX 15 Index (FADX 15), which represents the 15 largest and most liquid companies on the ADX. In 2021 IHC total assets reached AED 87 billion while total revenue grew 303% reaching AED 28,562 billion for the same period.
AGEL is the renewable energy platform of Adani Portfolio. The company has one of the world’s largest renewable portfolios, with locked-in growth of 20.4 GW across operational, under-construction, awarded and acquired assets, catering to investment-grade counterparties.
ATL is the transmission and distribution business arm of Adani Portfolio. It is the country’s largest private transmission company with a cumulative transmission network of 18,875 ckm, out of which 14,279 ckm is operational and 4,596 ckm is at various stages of construction. ATL also operates a distribution business serving about 12 million+ consumers in Mumbai.
Adani Enterprises Limited (AEL) is the incubation arm of Adani Portfolio. Over the years, Adani Enterprises has focused on building emerging infrastructure businesses and divesting them into separate listed entities.