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After selling out of two Adani Group companies last week, Abu Dhabi conglomerate International Holding Company (IHC) on Tuesday said it has increased its stake in Adani Enterprises Ltd (AEL) to above 5%.
"This strategic increase reflects IHC's conviction in the world leading incubation model of AEL and we believe that the inherent strength of Airports, Data Centers, Green Hydrogen, and various other verticals being incubated under AEL and that AEL is poised to uniquely capitalise on India’s robust growth journey," IHC said in a regulatory filing on the ADX where its shares trade.
Last week IHC said that its subsidiaries Green Energy Investment Holding RSC Ltd. and Green Transmission Investment Holding RSC Ltd. had entered into a definitive agreement with a buyer to dispose of their investments in renewables arm Adani Green Energy and power company Adani Transmission, without naming the buyer. It said the move was part of overall portfolio balancing.
In January this year, US short-seller Hindenburg Research accused the Indian conglomerate of stock manipulation and accounting fraud. Later the same month, IHC kept faith with the group and said it would invest $400 million in AEL's follow-on share offering, before the share sale got pulled.
IHC, which is the UAE's largest publicly traded company, last year invested about $500 million each in Adani Green Energy and Adani Transmission, and a further $1 billion in the group’s flagship Adani Enterprises.
(Writing by Brinda Darasha; editing by Seban Scaria)
