Abu Dhabi’s International Holding Company PJSC (IHC) has invested Rs 15,400 crore (USD 2 billion) as primary capital in three Adani portfolio companies — Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL) and Adani Enterprises Ltd (AEL).
IHC has invested Rs 3,850 crore each in AGEL and ATL and Rs 7,700 crore in AEL, the Indian conglomerate said on Tuesday.
Abu Dhabi-based global strategic investment company IHC has completed “a Rs 15,400 crore investment transaction in the Adani portfolio companies, AGEL, ATL and AEL,” the Adani Group said in a statement.
It, however, did not say how much these investment would translate into equity stakes.
IHC provided capital to the three firms through the preferential allotment route.
Syed Basar Shueb, CEO and Managing Director of IHC, said, “This strategic expansion of our business aligns with IHC’s commitment to broadening and diversifying our investment portfolio. There is no doubt that this transaction will directly and positively impact India’s overarching ambition for long-term plans for clean energy”.
The deal, he said, represents 4.87 per cent of the total trade between the UAE and India, which has reached USD 41 billion between 2020 and 2021.
“The partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector,” he said.
India’s total electricity generating capacity is more than 390 GW, and renewables exceed 100 GW.
“IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45 GW (9 per cent of India’s non-fossil energy) by 2030,” the statement said.
Sagar Adani, Executive Director of AGEL, said the group values IHC’s pioneering role as a strategic investor in sustainable energy, healthcare, food, infrastructure and energy transition in the UAE.
“This transaction marks the further strengthening of the India-UAE relationship and highlights the long history of business and trust between our peoples. We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship,” he said.
Adani Electricity Mumbai Limited, the distribution arm of ATL has legally covenanted targets to increase the renewable energy penetration from 3 per cent in FY21 to 60 per cent by FY27. IHC’s investment will support ATL in this transformational journey.
AEL through its wholly-owned subsidiary Adani New Industries Limited has undertaken to invest USD 50 billion over the next 9 years forming a new green hydrogen vertical focused on decarbonisation of industrial energy and mobility.