NEW DELHI: Abu Dhabi-based International Holding Co (IHC) on Tuesday said its holding in Adani Enterprises, the flagship firm owned by billionaire Gautam Adani, has increased to more than 5%.
The development comes days after the investor said about offloading stakes in two other group companies - Adani Green Energy and Adani Energy Solutions- as part of its rebalancing strategy.
The value of IHC holding in AEL now stands at around R 14,000 crore based on Tuesday’s closing price. AEL’s share closed 1% lower on Tuesday at R2,390 apiece and had a market cap of R 2.72 lakh crore. IHC first invested in the company in May 2022. It bought 3.52% for R 7,700 crore, the value of which now stands at R9,600, 25% higher.
However, the fund has increased its holding to over 5% through open market purchases over the past few months. This incremental investment is worth more than R4,000 crore. This is more than what the company is expected to fetch from stake sales in the other two group companies, Adani Green Energy and Adani Energy Solutions.
It holds 1.26% in Adani Green and 1.41% in Adani Energy Solutions, and the value of these stakes is around R3,200 crore based on Tuesday’s closing. “This strategic increase reflects IHC’s conviction in the world-leading incubation model of AEL and we believe that the inherent strength of Airports, Data Centers, Green Hydrogen, and various other verticals being incubated under AEL and that AEL is poised to uniquely capitalize on India’s robust growth journey.
IHC continues to explore unique investment opportunities in India with the goal to maximize stakeholders’ return,” said the investor in its latest statement.An Adani Group spokesperson said that the investment validates AEL’s standing as a global leader in incubating new businesses.