IHC boosted its holding in Adani Group flagship AEL to more than 5% from the 3.53% stake it first acquired in May 2022 for ₹7,700 crore. The investor last week disclosed that it would sell its stakes in Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission).
IHC said the decision to boost its holding in AEL reflects its conviction in the business incubation model of AEL, and the inherent strength of airports, data centres, green hydrogen and other verticals being incubated by the company. “IHC continues to explore unique investment opportunities in India with the goal to maximise stakeholders’ return,” IHC said in a statement.
The company now holds 5.04% in AEL through two separate subsidiaries, showed a regulatory filing on Tuesday.
Banking on India’s Growth Potential
“We are delighted with IHC’s decision to enhance its investment in Adani Enterprises Ltd, which further validates AEL’s standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure and equitable energy transition,” Adani Group said in a statement.
“We see IHC’s increased stake as a ringing endorsement of our robust capex plans, governance and transparency. This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders,” it said.
IHC had also invested Rs 7,700 crore across Adani Green Energy and Adani Energy Solutions in May 2022. While it decided to exit the latter two companies as part of its portfolio rebalancing strategy, as disclosed last Thursday, the company said it remains bullish on AEL.
While IHC did not disclose the price at which it would sell its stake in Adani Green Energy and Adani Energy Solutions, people with knowledge of the matter said the investor could be exiting at a steep loss given shares of both the companies are trading much below the price at which IHC had invested last year.
The losses are on account of the two stocks falling sharply after US-based short-seller Hindenburg Research published a report in late January accusing the conglomerate of fraud and stock price manipulation using offshore entities.
Adani Group has denied all allegations.
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