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Abu Dhabi's IHC is investing about $2bn in India's Adani Group's green-focused companies. Adani’s 648MW solar project in Tamil Nadu, pictured, is part of India’s plan to add 100GW of solar power by 2022

Abu Dhabi’s IHC to invest $2bn in India’s Adani Group

The company will invest in three of the Indian business conglomerate’s green-focused companies

Abu Dhabi’s International Holding Company is investing Dh7.3 billion ($2bn) in the Indian business conglomerate Adani Group, which is led by billionaire industrialist Gautam Adani.

As part of the deal, IHC will invest in three green-focused companies of the Adani Group including Adani Green Energy, Adani Transmission and Adani Enterprises, which are all listed on the Bombay Stock Exchange and National Stock Exchange of India. IHC made the statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.

“This will be a long-term investment in India as the country is driving much innovation globally, including the green energy sector,” said Syed Basar Shueb, chief executive and managing director of IHC.

“The opportunity to earn a compelling return on investment in green energy has never been greater. We are confident that Adani companies will play a significant role in unleashing India’s total green energy potential, reflecting positively on our shareholders’ commitment.

IHC will invest Dh1.83bn in Adani Green Energy, Dh1.83bn in Adani Transmission and Dh3.67bn in Adani Enterprises, which will be used for “pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes”.

The investment is subject to shareholder and regulatory approvals and will comply with India’s security regulations. The deal is expected to be completed a month after all necessary approvals are obtained.

“This is a landmark transaction and marks a start of a wider relationship between Adani Group and IHC and attracting further investment from UAE into India,” said Sagar Adani, executive director at Adani Green Energy.

ADX-listed IHC is majority-owned by Abu Dhabi’s PAL group of companies. The company has expanded its operations to include real estate, health care, food and agriculture sectors.

Last year, IHC snapped up a controlling stake in Abu Dhabi investment company Al Qudra Holding and a 60 per cent share of Afkar Financial and Property Investments.

It also holds a 48 per cent share in Emirates Driving Company, a 60 per cent interest in Royal Horizon Holding and its subsidiaries, among others.

IHC reported a more than threefold jump in its 2021 profit to Dh11.3bn, as revenue surged fourfold to Dh28.3bn on the back of new acquisitions.

To Know More: https://www.thenationalnews.com/business/economy/2022/04/08/abu-dhabis-ihc-to-invest-2bn-in-indias-adani-group/

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