Abu Dhabi-based IHC to invest USD 2 billion in Adani Group’s green portfolio
IHC will invest ₹3,850 crore in AGEL, ₹3,850 crore in ATL and ₹7,700 crore in AEL, in compliance with SEBI regulations. The transaction is expected to be completed in a month; after all necessary approvals are obtained.
Abu Dhabi-based International Holding Company PJSC (IHC) will invest USD 2 billion as primary capital in three Adani portfolio companies – Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL), and Adani Enterprises Ltd (AEL) – through the preferential allotment route.
The boards of AGEL, ATL and AEL met on April 8 and approved the transaction, according to a spokesperson of the Adani Group.
“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 the Adani Group and IHC and attracting further investment from UAE into India,” said Sagar Adani, Executive Director, AGEL.
This investment is testament to the IHC’s and the Adani Portfolio’s shared vision and commitment of investing in sustainable companies that are leading the charge in energy transition, he said.
IHC will invest ₹3,850 crore in AGEL, ₹3,850 crore in ATL and ₹7,700 crore in AEL, in compliance with SEBI regulations. The transaction is expected to be completed in a month; after all necessary approvals are obtained. The capital will be utilised for pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes.
At the COP 26 Summit in Glasgow in November 2021, Prime Minister Narendra Modi announced that India will take its non-fossil energy capacity to 500 GW by 2030. The country will meet 50 per cent of its energy requirements from renewable energy by 2030. By 2070, India aims to achieve the target of net zero carbon emissions, the PM had said.
The Adani Group has drawn out plans to invest over 70% of the planned Capex in green technologies until 2030, said a company official aware of the development. This includes investments with potential partners for electrolyzer manufacturing, backward integrations for component manufacturing to secure the supply chain for the solar and wind generation businesses, and AI-based utility and industrial cloud platforms, he added.
In September 2021, the Adani group announced plans to triple their renewable power generation capacity over the next four years – from 21% now to a high of 63%. Back then, it also announced plans to invest over USD 20 billion across renewable energy generation, component manufacturing, and transmission distribution over the next 10 years.
“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,” said Syed Basar Shueb, CEO and Managing Director of IHC in a media statement.
IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to ‘Abu Dhabi’s Vision 2030’, the Abu Dhabi Securities Exchange (ADX) listed company aims to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates.