IHC increases stake in Adani Enterprises to over 5%
Abu Dhabi-based International Holding Company (IHC) has increased its shareholding in billionaire Gautam Adani's flagship company, Adani Enterprises Ltd., to over 5%. In a recent exchange filing, IHC expressed confidence in Adani Enterprises' world-leading incubation model. IHC Capital has specifically highlighted Adani Enterprises's robust presence in key sectors such as airports, data centers, and green hydrogen. These areas of operation are considered the company's "inherent strength," positioning it uniquely to harness India's ongoing economic expansion.
Subsidiary's shareholding pattern in Adani Enterprises
According to the latest shareholding pattern, IHC's subsidiary, Green Enterprises Investment Holding Rsc Ltd., held a 3.53% stake in Adani Enterprises as of June 2023. Last week, IHC Capital announced its intention to divest its holdings in Adani Green Energy Ltd. and Adani Energy Solutions Ltd. (formerly Adani Transmission). This strategic decision aligns with IHC's broader portfolio rebalancing strategy
IHC's previous commitment
In a previous move, in January, IHC had committed a sizeable amount of 1.4 billion Emirati dirhams, equivalent to approximately Rs. 3,260 crore, in Adani Enterprises' Rs. 20,000-crore Follow-on Public Offering (FPO). However, the FPO was later shelved, leading IHC to explore alternative avenues to increase its stake.
Implications of IHC's investment for Adani Enterprises
Adding to the recent developments, earlier this month, two promoter-owned companies affiliated with Adani Enterprises, Kempas Trade and Investment Ltd. and Infinite Trade and Investment Ltd., collectively acquired a 2.06% stake or 2.35 crore shares in the conglomerate through open market purchases. This transaction took the total promoter stake in Adani Enterprises to an impressive 71.93%.
