Abu Dhabi-based International Holding Company yesterday (April 8) announced that it had signed a AED7.3 billion ($2 billion) investment agreement with Indian multinational conglomerate Adani Group, as primary capital in three of its portfolio companies – Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL) and Adani Enterprises Limited (AEL) which all are listed on the Bombay Stock Exchange and National Stock Exchange in India – through the preferential allotment route.
Earlier in the day, the boards of AGEL, ATL, and AEL met and approved the transaction. The investment is subject to shareholder and regulatory approvals and shall comply with SEBI regulations, said a statement from IHC.
As per the deal, IHC will invest AED1.83 billion ($500 million) in AGEL, AED1.83 billion ($500 million) in ATL and AED3.67 billion in AEL ($1 billion), in compliance with SEBI regulations.
The transaction is expected to be completed in a month after all necessary approvals are obtained. The capital will be utilized for pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes, it stated.
AGEL Executive Director Sagar Adani said: "We are delighted to commence this intergenerational relationship with IHC. We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy, and energy transition."
Landmark transaction
"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," he noted.
The three Adani companies – AGEL, ATL and AEL – are market leaders in their business sectors and span the Adani Group’s green portfolio.
Every one of these three businesses has the core aspects of ESG woven into their operations. This investment is testament to the IHC’s and the Adani Portfolio’s shared vision and commitment of investing in sustainable companies that are leading the charge in energy transition.
On the strategic move, CEO and Managing Director Syed Basar Shueb said: "This will be a long-term investment in India as the country is driving much innovation globally, including the green energy sector. 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," he added.-TradeArabia News Service