Abu Dhabi-headquartered International Holding Company (IHC) has decided to invest around $400 million in Adani Enterprises’ additional public offering, saying it is confident in Indian billionaire Gautam Adani’s business empire.
The company listed on the Abu Dhabi Securities Exchange (ADX), said it would subscribe to the offering through its subsidiary, Green Translation Investment Holding.
The funds the Emirati company plans to inject represent about 16 percent of the total size of the $2.5 billion offering.
This is IHC’s second investment deal with India’s Adani Group after investing AED 7.3 billion ($2 billion) last year in three Adani Group subsidiaries focused on clean energy and the environment, including Adani Green Energy, Adani Transition and Adani Enterprises, all of which are listed on the Bombay and India National Stock Exchanges, according to a statement issued by the Holding.
IHC CEO, Syed Basar Shueb, said: “We see strong potential for Adani Enterprises’ growth from a long-term perspective and added value for our shareholders.”
“The advantage of the FPO is the presence of the historical reference for the company’s earnings report, the company’s management, business practices, and a lot of data that can be relied upon before making any investment decision,” Shueb explained.
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The company’s announcement comes as Adani seeks to regain confidence in his empire following a report from Hindenberg Research targeting companies controlled by Gautam Adani.
The Hindenburg report pointed to a range of problems, including the group’s high debt, and the fact that its associated companies are overvalued by about 85 percent.
On Monday, shares of most Adani Group companies fell despite the Indian conglomerate’s prolonged weekend refutation of fraud allegations.
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