Adani Enterprises shares jump 3% after IHC's stake buy; Abu Dhabi fund now holds over 5%

Abu Dhabi-based conglomerate International Holding Company (IHC) on October 3 raised its stake in Adani Enterprises Ltd to above 5 percent.

Adani Enterprises share price jumped more than 3% on Wednesday as investors cheering Abu Dhabi's International Holding Company (IHC) raising its stake in the company to above 5 percent. "This strategic increase reflects IHC's conviction in the world-leading incubation model of AEL," IHC said in a filing to the Abu Dhabi Stock Exchange. AEL stock was top gainer in the Nifty50 pack at 11:00 am.

IHC arm Green Vitality RSC Ltd., along with subsidiaries Green Enterprises Investment Holding RSC Ltd. and Green Energy Investment Holding RSC Ltd., acquired a 0.06 percent stake, taking their combined shareholding to 5.04 percent in Adani Enterprises. With the new investments, the value of IHC's holding in the Adani group's flagship company stood at around Rs 14,000 crore, based on Tuesday's closing price.

IHC said it believes that "the inherent strength of airports, data centres, green hydrogen and various other verticals being incubated under AEL (Adani Enterprises) is poised to uniquely capitalise on India's robust growth journey."

The move comes days after IHC sold its stake in two of the Adani Group companies. Last week, IHC stated that as part of a "portfolio rebalancing strategy," it will sell its 1.26 percent stake in Adani Green Energy Ltd and 1.41 percent stake in Adani Energy Solutions.

Also Read | Abu Dhabi-based IHC raises stake in Adani Enterprises to over 5%

"IHC continues to explore unique investment opportunities in India with the goal to maximise stakeholders' return," IHC’s exchange filing added.

Welcoming IHC’s stake buy, a spokesperson of the Adani Group said, “We are delighted with IHC's decision to enhance its investment in Adani Enterprises Ltd (AEL), which further validates AEL’s standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure and equitable energy transition.”

, “This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders,” the Adani Group spokesperson added.

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Adani Enterprises share Technicals

In the previous session, Shares of Adani Enterprises closed at Rs 2,387.10, down by 1.11 percent. The stock has fallen 37.86 percent so far this year. However, it has jumped 40 percent in the last six months. Technicals show that the relative strength index (RSI) of the stock stands at 38.2, implying that it's trading neither in the overbought nor in the oversold territory.

The 1-year Beta of Adani Enterprises stands at 2.54, implying very high volatility. The stock is trading below its 5 day, 10 day, and 20 day, 50 day, 100 day and 200 day moving averages, according to Trendlyne data.

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