Abu Dhabi's IHC completes Rs 15,400 cr investment in three Adani companies

International Holding Company PJSC (IHC) of Abu Dhabi on Tuesday completed its Rs 15,400 crore investment transaction in three Adani companies -- Adani Green Energy (AGEL), Adani Transmission (ATL) and flagship, Adani Enterprises (AEL), a statement from Adani said.

IHC has made the Investment via the preferential allotment route. Syed Basar Shueb, CEO and MD of IHC, said, "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. The deal represents 4.87 per cent 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."

Sagar Adani, executive director of Adani Green Energy Ltd, said, “We are delighted to complete this landmark transaction with IHC. We value 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.”

Adani Electricity Mumbai, the distribution arm of Adani Transmission, has legally covenanted targets to increase the renewable energy penetration from 3 per cent in FY21 to 60 per cent by FY27. IHC’s investment will support ATL in this transformation. India's total electricity generating capacity is more than 390GW, and renewables exceed 100 GW. Last year at the United Nations Climate Change Conference, the Indian government announced that by 2030 India's non-fossil fuel capacity would be 500 GW, the statement said.

IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45 GW (9 per cent of India's non-fossil energy) by 2030.