The three Adani Group companies, which will receive the investment, are publicly-listed in India and the investment will be made through the preferential allotment route
India’s Adani Group has secured an investment of AED7.3bn ($2bn) for its green portfolio made up of Adani Green Energy (AGEL), Adani Transmission (ATL), and Adani Enterprises (AEL) from International Holding Company (IHC), an Abu Dhabi-based conglomerate.
All the three Adani Group companies are publicly-listed in India and the investment in them will be made via the preferential allotment route.
The boards of Adani Green Energy, Adani Transmission, and Adani Enterprises have approved the transaction. The investment is conditional on shareholder and regulatory approvals and will be in compliance with SEBI regulations, said Adani Group.
Adani Green Energy executive director Sagar Adani said: “We are delighted to commence this inter-generational relationship with IHC. We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy, and energy transition.
“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.”
Adani Green Energy will receive an investment of AED1.83bn ($500m) from IHC, The same amount of investment will be made in Adani Transmission, while Adani Enterprises will get an investment of AED3.67bn ($1bn).
The investment deal is anticipated to be wrapped up in a month, after all the required approvals are obtained.
Adani Group plans to use the capital for pursuing the growth of the respective energy businesses and further bolster the balance sheet. The Indian conglomerate will also use the amount for general corporate purposes.
IHC 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.”
In September 2021, Adani Group announced plans to inject $20bn in renewable energy production, component manufacturing, and transmission and distribution during the next 10 years.