ADANI ENTERPRISES’ OWNERSHIP STAKE IN IHC SURPASSES 5%

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IHC's ownership in Adani Enterprises has surpassed the 5% threshold

International Holding Company (IHC), the conglomerate based in Abu Dhabi, has raised its ownership stake in Adani Enterprises Ltd (AEL) to over 5%, just days after divesting its holdings in two other Adani-affiliated companies.

IHC procured 6.43 lakh shares of Adani Group’s flagship company from the open market, elevating its total ownership to approximately 5.04%. As of June 30, 2023, IHC, through its subsidiary Green Enterprises Investment Holding Rsc Ltd, held a 3.53% stake in AEL, which it subsequently augmented to 4.98% by the end of September. It is worth noting that IHC’s shares are closely held by a group headed by Sheikh Tahnoun bin Zayed al Nahyan, the United Arab Emirates’ national security adviser and the brother of Abu Dhabi Crown Prince Mohammed bin Zayed, according to Reuters. The Royal Group, chaired by Sheikh Tahnoun, holds the majority stake in IHC, and Sheikh Tahnoun also serves as the chairman of IHC.

The conglomerate’s move to increase its stake in AEL beyond 5% is indicative of IHC’s strong belief in AEL’s leading incubation model, which encompasses various sectors such as airports, data centers, green hydrogen, and other verticals poised to leverage India’s robust growth trajectory. IHC conveyed its commitment to exploring distinctive investment opportunities in India to maximize returns for stakeholders in a regulatory filing with the Abu Dhabi Securities Exchange, without disclosing the purchase price of the additional shares.

As of Tuesday’s close on the BSE, AEL’s shares were valued at Rs 2,387.55, resulting in a market capitalization of Rs 2.72 lakh crore. Consequently, at current market prices, IHC’s 5.04% ownership represents nearly Rs 13,717 crore.

A spokesperson from the Adani Group expressed satisfaction with IHC’s decision to bolster its investment in AEL, underscoring AEL’s global leadership in incubating new ventures, particularly in sustainable infrastructure, global aviation infrastructure development, and equitable energy transition. The spokesperson regarded IHC’s increased stake as a resounding endorsement of AEL’s robust capital expenditure plans, governance, transparency, and the long term partnership with IHC as a testament to India’s dynamic growth potential, promising significant returns to stakeholders.

Notably, the week prior, the Abu Dhabi-based firm divested its 1.26% stake in Adani Green Energy Ltd and 1.41% in Adani Energy Solutions (formerly Adani Transmission) as part of a portfolio rebalancing initiative.

Adani Stake

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