Three Adani group firms get $2 bn investment from Abu Dhabi's IHC

AGEL, ATL and AEL are market leaders in their sectors and form the Adani Group's green energy portfolio. The Capital will be used for expanding business.

Abu Dhabi-based International Holding Company PJSC (IHC) is set to invest Rs 15,400 crore ($2 billion) in three Adani portfolio companies — Adani Green Energy (AGEL), Adani Transmission (ATL) and Adani Enterprises (AEL). The investment will happen through the preferential allotment route.

The boards of the three Adani firms met and approved the transaction on Friday. The deals will be subject to shareholder and regulatory approvals.

Adani Enterprises is set to receive a Rs 7,700-crore investment while AGEL and ATL will receive Rs 3,850 crore each, in compliance with Securities and Exchange Board of India (Sebi) regulations.

“We are delighted to commence this inter-generational relationship with IHC. We are committed to the shared vision and values of investment in sustainable infrastructure, green energy and energy transition," said Sagar Adani, executive director, AGEL.

He added, "This is a landmark deal and it marks the start of a wider relationship between the Adani Group and IHC.”

Syed Basar Shueb, chief executive officer (CEO) and Managing Director of IHC, said the investment will be a long-term one as India is spearheading innovation across the globe, 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 the (Adani) companies will play a significant role in unleashing India's total green energy potential, reflecting positively on our shareholders' commitment," he said.

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.

Shares of Adani Green advanced 8.03 per cent on Friday, Adani Transmission rose 4.50 per cent, and Adani Enterprises went up by 3.48 per cent.