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IHC to Invest Dh1.4 billion in Adani Enterprises

The Abu Dhabi-based group subscribed to 16 per cent of Adani Enterprises $2.5 billion further public offering (FPO); The company will continue to explore business opportunities in Europe, Africa, Asia, and South America in 2023

International Holding Company (IHC) on Monday said it would be investing Dh1.4 billion ($400 million) in Indian billionaire Gautam Adani-led Adani Enterprises’ $2.45 billion follow-on sale of shares that began last week.

In a statement, the diversified Abu Dhabi-based conglomerate said that it would be investing into the Adani Enterprises further public offering (FPO) through its subsidiary Green Transmission Investment Holding RSC Limited. It subscribed to about 16 per cent of Adani Enterprises $2.5 billion further public offering, according to a statement.

This is the second investment deal IHC has completed with India's Adani Group after last year's Dh7.3 billion ($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 the Bombay Stock Exchange and National Stock Exchange of India.

On Monday, stock exchanges latest data showed that Adani has now received bids for 1.4 million shares, or just over three per cent, of the 45.5 million shares on offer. The deal close will close on Tuesday (January 31,2023).

“Foreign and domestic institutional investors, as well as mutual funds, have made no bids so far,” according to the data.

"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.

IHC, which was founded in 1998 as part of an initiative to diversify and develop non-oil business sectors in the UAE, has become become the most valuable listed holding company in the Middle East with a market cap of Dh648 billion as of Sep 30, 2022. is included in FTSE ADX 15 Index (FADX 15), representing the top 15 largest and most liquid companies on the ADX.

Diversifying investment

IHC's first investment of the year comes as the company continues to scale and diversify its investments locally and internationally, focusing on Europe, Africa, Asia, and South America Markets in 2023.

"The advantage of the FPO is the historical reference for the company's earnings report, company's management, business practices, and much data to bank on before making any investment decision," Shueb explained.

IHC continues to look ahead this year as its ambitious progression strategy gets well underway, with an expected further acquisition across four continents by the end of the year alone, focusing on a fast-growing economy, rapidly expanding equity markets, and top investment destination.

"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 aims to increase its global acquisition by 70 per cent in 2023, with the clean energy and food processing sectors being a key focus.

IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations. Comprising more than 422 subsidiaries and 82,000 employees, IHC seeks to expand and diversify its holdings across a growing number of sectors, including real estate developments, agriculture, healthcare, food and beverage, utilities, industries, IT and communications, retail and leisure, and capital.

— muzaffarrizvi@khaleejtimes.com