Abu Dhabi’s IHC invests ₹15,400 cr in Adani group
NEW DELHI: Abu Dhabi’s International Holding Company PJSC (IHC) has invested ₹15,400 crore ($2 billion) as primary capital in three Adani portfolio companies, Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL) and Adani Enterprises Ltd (AEL). IHC has invested ₹3,850 crore each in AGEL and ATL and ₹7,700 crore in AEL, the Adani group said on Tuesday.
Abu Dhabi-based global strategic investment company IHC has completed “a ₹15,400 crore investment transaction in the Adani portfolio companies, AGEL, ATL and AEL,” the Adani Group said. It, however, did not say how many equity shares these investment would translate into.
IHC provided capital to the three firms through the preferential allotment route.
“This strategic expansion of our business aligns with IHC’s commitment to broadening and diversifying our investment portfolio. There is no doubt that this transaction will directly and positively impact India’s overarching ambition for long-term plans for clean energy,” said Syed Basar Shueb, chief executive officer and managing director of IHC.
The deal, he said, represents 4.87% of the total trade between the UAE and India, which has reached $41 billion between 2020 and 2021. “The partnership between IHC and Adani group greatly reflects the economic ties between the UAE and India beyond the oil sector,” he said.
India’s total electricity generating capacity is more than 390 GW, and renewables exceed 100
GW. “IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45 GW (9% of India’s non-fossil energy) by 2030,” it said.
Sagar Adani, executive director of AGEL, said the group values IHC’s pioneering role as a strategic investor in sustainable energy, healthcare, food, infrastructure and energy transition in the UAE. “This transaction marks the further strengthening of the India-UAE relationship and highlights the long history of business and trust between our peoples. We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship,” he said.
Adani Electricity Mumbai Limited, the distribution arm of ATL has legally covenanted targets to raise green energy penetration from 3% in FY21 to 60% by FY27.