Abu Dhabi’s IHC To Invest $400 Mn In Adani Enterprises FPO
The common goals towards green energy, attracted Abu Dhabi’s IHC to invest $400 million in Adani Group amid ‘Adani vs Hindenburg’ conflict.
International Holding Co. (IHC) of Abu Dhabi has invested $400 million (Rs 3,260 crore) in Indian billionaire Gautam Adani’s company Adani Group, which is in headlines after the Hindenburg research report.
IHC stated that it would invest around $400 million to the FPO (follow-on share sale) of Adani Enterprises, demonstrating its confidence in the company’s fundamentals despite the decline in share value.
Abu Dhabi’s IHC $400 Mn Investment In Adani’s FPO
According to a statement, IHC will invest the money through its subsidiary Green Transmission Investment Holding RSC Limited. IHC has purchased 16% of the $2.5 billion FPO offered by Adani Enterprises.
IHC’s investment pledge comes at a time when the big FPO of billionaire Gautam Adani’s flagship company is having difficulty closing as a result of last week’s dramatic stock market decline.
Syed Basar Shueb, Chief Executive Officer of IHC, was stated in the statement as saying,
“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.”
India-UAE Bilateral Trade Strengthen Since CEPA
The bilateral trade relations between India and UAE have strengthened more after the CEPA (Comprehensive Economic Partnership Agreement).
The CEPA is an agreement between the Government of India and the Government of the United Arab Emirates (UAE).
A CEPA between India and UAE became effective on May 1, 2022. Businesses can now profit from numerous additional advantages as an outcome of the agreement, by lowering or eliminating tariffs on more than 80% of products, UAE exporters will have greater access to the Indian market.
Common Goals With Green Energy Projects
India and UAE share common commitment towards green energy climate action. Adani Group’s prime interest is in green energy with a large number of its projects in this sector.