Friday, 31 March, 2023

Abu Dhabi’s IHC to invest $381m in Adani Enterprises

Abu Dhabi’s IHC to invest $381m in Adani Enterprises

International Holding Company, the UAE's most-valuable listed company, will invest Dh1.4 billion ($381 million) in the follow-on share sale floated by Indian billionaire Gautam Adani’s flagship business last week.

The investment in Adani Enterprises' $2.5 billion further public offering (FPO) is IHC's first this year and part of the Abu Dhabi conglomerate's efforts to scale up and diversify its investments globally, it said on Monday, report agencies.

The investment will be made through the group's subsidiary, Green Transmission Investment Holding.

“For the past three years, India has been a key investment destination for IHC," Syed Shueb, chief executive of IHC, told                 The National on Monday. "It is a large market that presents opportunities with monetary economic stability.

"Our trust in the Indian regulatory body for securities markets makes India an attractive destination for IHC."

IHC will be eyeing more acquisitions throughout this year, focusing on fast-growing economies, rapidly expanding equity markets and top investment destinations, it said.

It aims to increase its global acquisition by 70 per cent by the end of the year, with the clean energy and food processing sectors being a key focus. It will seek opportunities in Europe, Africa, Asia and South America, the company said.

"We are watching the international market closely for new prospects and we will continue exploring further opportunities outside our traditional market in 2023," Mr Shueb said.

IHC's investment comes as Adani Group is embroiled in a controversy after US investor Hindenburg Research last week said it was shorting the conglomerate's stocks.

In a January 24 report, Hindenburg accused companies controlled by Mr Adani, Asia’s richest man, of being involved in "brazen" market manipulation and accounting fraud.

Shares of the companies under the Adani Group umbrella plummeted as a result, with losses continuing on Monday. Companies in the conglomerate have lost a combined $68 billion in market capitalisation since Wednesday.