Abu Dhabi's International Holding Company (IHC) on January 30 said it will invest $400 million in Adani Enterprises' ongoing Rs 20,000-crore follow-on public offer (FPO) via its subsidiary Green Transmission Investment Holding RSC Limited.
IHC, one of Abu Dhabi's most valuable listed companies, was an investor in Adani Enterprises' share offering's anchor book as well.
"Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises Ltd; we see a strong potential for growth from a long-term perspective and added value to our shareholders," said Syed Basar Shueb, Chief Executive Officer, IHC in the company's press release.
The transaction will be subject to the completion of all necessary procedures post all the regulatory approvals are obtained, IHC added.
This will be the second investment deal IHC has completed with Adani Group after last year's $2 billion investment in three green-focused companies of the Adani Group, including Adani Green Energy, Adani Transmission, and Adani Enterprises, which are all listed on Indian exchanges.
"The advantage of the FPO is the historical reference for the company's earnings report, company's management, business practices, and much data to bank on before making any investment decision," Shueb explained.
"We are watching the international market closely for new prospects, and we will continue exploring further opportunities outside our traditional market in 2023," Shueb added.
IHC was founded in 1998 as part of an initiative to diversify and develop non-oil business sectors in the UAE. The company has a market value of about Dh882 billion as of Friday and has been rapidly expanding its operations globally, through acquisitions and joint investments.
Meanwhile, the FPO by Adani Enterprises has managed to garner bids for 1.39 million shares against its offer size of 45.5 million shares, representing a 3 percent subscription so far on January 30, the second day of the sale.
Shares of Adani Enterprises today (January 30) closed 4.21 percent higher at Rs 2,878.50 apiece on BSE.
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IHC's investment comes amid severe hammering of the Indian conglomerate's stocks following a scathing report by a US-based short seller Hindenburg Research.
Despite that, Gautam Adani's group has expressed confidence that FPO "will sail through."
Group CFO Jugeshinder Singh said no change in offering price or schedule is being considered due to temporary volatility in the market as the FPO of Adani Enterprises Ltd is the best vehicle for strategic institutional investors to own a pie of the conglomerate's fast-expanding airports, mining, roads, new energy and data centre businesses.
In its two-year-long investigation, Hindenburg Research alleged that the ports-to-energy-to-cement conglomerate had engaged in ''brazen stock manipulation and accounting fraud'' for decades.
The report by the New York firm that specialises in short selling led to Adani Group losing more than $50 billion in market value in just two trading sessions last week and Adani himself losing in excess of $20 billion, or about one-fifth of his total fortune.
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