Abu Dhabi’s IHC boosts Stake in Adani Enterprises to over 5%

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Abu Dhabi's IHC boosts Stake in Adani Enterprises to over 5%
©  Bloomberg

International Holding Company (IHC), the United Arab Emirates’ largest publicly traded company valued at approximately $241 billion, has disclosed its recent move to raise its ownership stake in India’s embattled Adani Enterprises Limited (AEL) to over five percent.

This development transpired within a week of IHC reportedly divesting its holdings in two of the Adani Group’s companies.

Billionaire Gautam Adani’s conglomerate has grappled with accusations of insider trading and stock manipulation following a critical report by US-based Hindenburg Research. Adani has vehemently denied these allegations, and the group has been exonerated of any wrongdoing by Indian courts.


International Holding Company Subsidiary Purchases 0.06% Stake in Adani Enterprises

© Bloomberg / Image: Indian Billionaire Gautam Adani

In a filing with the Bombay Stock Exchange (BSE), Adani Enterprises has disclosed that Green Vitality RSC Ltd, an IHC subsidiary, acquired an additional 0.06 percent stake in the company from the open market on Tuesday.

Green Vitality acted on behalf of Green Enterprises Investment Holding, which already held a 4.98 percent stake in Adani Enterprises as of the end of September. This new investment has boosted IHC’s overall holding in Adani Enterprises to 5.04 percent.

The announcement had a positive impact on Adani Enterprises shares at the BSE opening on Wednesday. Despite the Sensex being down 457 points (-0.7%), AEL shares climbed to INR 2,398.1 ($28.81), an increase of approximately half a percent.

In a statement filed with the Abu Dhabi Securities Exchange (ADX) on Tuesday, Syed Bashar Suyeb, Managing Director of IHC, stated, “International Holding Company has increased its stake in Adani Enterprises Ltd (AEL) to above 5 percent.”

Suyeb added, “This strategic increase reflects IHC’s confidence in the world-leading incubation model of AEL, and we believe that the inherent strength of Airports, Data Centers, Green Hydrogen, and various other verticals being incubated under AEL positions it uniquely to capitalize on India’s robust growth journey.”

“We are delighted with IHC’s decision to enhance its investment in Adani Enterprises Ltd, which further validates AEL’s standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure, and fostering an equitable energy transition,” said a spokesperson for the Adani Group on Tuesday.

The spokesperson further remarked, “We view IHC’s increased stake as a strong endorsement of our robust capital expenditure plans, governance, and transparency. This long-term partnership with IHC is a testament to India’s dynamic growth potential and offers significant returns to our stakeholders.”

IHC reported a significant 62 percent surge in second-quarter net profit, reaching AED 4.56 billion ($1.24 billion), as revenue rose by 13 percent year-on-year to approximately AED 13 billion ($3.54 billion).

In recent quarters, IHC, along with its subsidiaries such as Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine, and Multiply Group, has made several strategic investments. As of June 30 this year, IHC’s total assets amounted to AED 229.59 billion ($62.52 billion).


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