Adani partnership remains steadfast: IHC on Adani units’ stake sale

As the Abu Dhabi conglomerate International Holding Company (IHC) announced its stake sale in India’s Adani Green Energy and Adani Energy Solutions, it stated that this disclosure aligns with the company’s strategy to rebalance its investment portfolio. The company emphasised that “its partnership with Adani and dedication to the Indian market remain steadfast.”

IHC further noted that it continually strives to enhance shareholder value and that additional details regarding the transaction will be disclosed in its upcoming quarterly financial report.

In a stock exchange notice, IHC revealed that its subsidiaries have entered into an agreement with an undisclosed buyer to dispose of its foreign direct investment in Adani Green Energy and Adani Energy Solutions.

IHC, which is the United Arab Emirates’ largest publicly traded company, valued at over $235.98 billion, did not provide details about the buyer or the scale of the investment being sold. The conglomerate specified that its units, Green Energy Investment Holding and Green Transmission Investment Holding, have signed an agreement to sell their respective stakes in the two Adani group companies.

According to Bombay Stock Exchange data, Green Energy Investment Holding has a 1.26 per cent stake in Adani Green Energy, while Green Transmission Investment Holding holds a 1.41 per cent stake in Adani Energy Solutions.

In 2022, the Adani Group secured a $2 billion investment from IHC as primary capital, which was distributed across three Adani group companies. This investment included $463 million each in Adani Green Energy and Adani Energy Solutions. The capital infusion was made via the preferential allotment route. A statement from the Adani Group indicated that IHC’s investment would support and accelerate their plan to supply India with 45 GW (representing 9 per cent of India’s non-fossil energy) by 2030.

Earlier in September, Adani Green Energy disclosed that French oil major TotalEnergies would invest $300 million to establish a joint venture aimed at building renewable energy capacity in India. This marks the third instance of TotalEnergies partnering with Adani Green Energy and the first since the release of a report by US short-seller Hindenburg Research in January, which accused the Adani Group of corporate misconduct.