Abu Dhabi's IHC to sell stake in two Adani group companies

Abu Dhabi conglomerate International Holding Company (IHC) on Thursday said it will sell its stake in two of India's Adani Group companies, a move that comes as billionaire Gautam Adani's business continues its battle against fraud allegations.

Overseas investors such as the IHC have backed Adani in the face of allegations raised by US short seller Hindenburg Research in January that the apples-to-airports conglomerate engaged in stock manipulation and had amassed significantly high debt.

The Adani Group has denied all allegations and the Indian markets regulator is investigating the matter under orders of India's Supreme Court.

The IHC, which is the UAE's largest publicly traded company worth more than $235.98 billion, said in a stock exchange notice that its subsidiaries have entered an agreement with a buyer to "dispose of" its foreign direct investment in Adani Green Energy and Adani Energy Solutions.

But the share offering was called off as the allegations hammered the group's listed companies, which lost nearly $147 billion in market value, before recovering a majority of the losses in the following months.