International Holding Company PJSC (IHC), the Abu Dhabi-based conglomerate, has announced that it 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.
IHC will invest Rs 3,850 crore in AGEL, Rs 3,850 crore in ATL and Rs 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.
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 “This is a landmark transaction and marks a start of a wider relationship between The Adani Group and IHC and attracting further investment from UAE into India.”
The three Adani companies – AGEL, ATL and AEL – span the 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 statement 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. "
