Adani Portfolio Companies achieve primary equity transaction with IHC worth INR 15,400 Cr
17 May, 2022 | Riya Girdhar
IHC's investment in Adani Group accounts for 4.87 per cent of the total UAE-India trade. Its collaboration with Adani will generate 9% of India's non-fossil energy capacity by 2030.
Adani AGEL plans to build and operate a renewable energy capacity of 25 GW by 2025 and 45 GW by 2030.
International Holding Company PJSC (IHC), an Abu Dhabi-based global strategic investment firm, announced today the completion of an INR 15,400 Crore (USD 2 billion) investment transaction in the Adani Portfolio companies, Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), and Adani Enterprises Limited (AEL).
Through the preferential allotment route, IHC has provided capital to Adani Green Energy Ltd., Adani Transmission Ltd., and Adani Enterprises Ltd., all of which are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
IHC’s CEO and Managing Director, Syed Basar Shueb, stated: “This strategic expansion of our business is consistent with IHC’s commitment to diversifying and broadening our investment portfolio. There is no doubt that this transaction will have a direct and positive impact on India’s overall ambition for long-term clean energy plans. The agreement represents 4.87 percent of total trade between the UAE and India, which reached USD41 billion between 2020 and 2021; the partnership between IHC and Adani Group exemplifies the UAE-India economic ties beyond the oil sector”
India’s total electricity generation capacity exceeds 390GW, with renewables exceeding 100GW. The Indian government announced last year at the United Nations Climate Change Conference that India’s non-fossil fuel capacity would be 500 GW by 2030. The investment by IHC will support and accelerate Adani Group’s growth strategy of supplying the country with 45 GW (9 per cent of India’s non-fossil energy) by 2030.
“We are delighted to complete this landmark transaction with IHC,” said Sagar Adani, Executive Director of Adani Green Energy Ltd. We appreciate IHC’s pioneering role in the UAE as a strategic investor in sustainable energy, healthcare, food, infrastructure, and Energy Transition. This transaction cements the India-UAE relationship and highlights the long history of business and trust between our people. As we embark on this intergenerational relationship, we share IHC’s strategic vision for India, the Middle East, and Africa.”
Adani Electricity Mumbai Limited, the distribution arm of Adani Transmission Limited, has legally committed to raising renewable energy penetration from 3% in FY21 to 60% by FY27. The investment from IHC will help ATL on its transformational journey.
Adani Enterprises Limited, through its wholly owned subsidiary Adani New Industries Limited, has committed to investing USD 50 billion over the next nine years in establishing a new green hydrogen vertical focused on decarbonizing industrial energy and mobility.