Gujarat: Adani Portfolio Companies completes primary equity transaction of Rs 15,400 cr with IHC

Shivam Bangwal May 18, 2022

2 minutes read

Adani AGEL to develop and operate renewable energy generation capacity of 25 GW by 2025 and 45 GW by 2030

International Holding Company PJSC (IHC), an Abu Dhabi-based global strategic investment company, today announced Rs 15,400 crore (US$ 2 billion) in Adani Portfolio Companies, Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL) and Adani Enterprises Limited (AEL). Dollar) has announced the completion of the investment transaction.

IHC will provide capital to Adani Green Energy Limited, Adani Transmission Limited and Adani Enterprises Limited, which are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSX) in India on the preferential allotment route.

Syed Basar Shuaib, CEO and Managing Director of IHC said, “This strategic expansion of our business is in line with IHC’s commitment to broaden and diversify our investment portfolio. There is no doubt that this transaction will directly and positively impact India’s broader ambition in the long term plan for clean energy. The deal represents 4.87% of the total trade between the UAE and India, reaching USD 41 billion between 2020 and 2021. This partnership between IHC and the Adani Group reflects the economic ties between the UAE and India beyond the oil sector.

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India’s total electricity generation capacity is over 390 GW, and renewable energy is over 100 GW. Last year at the United Nations Climate Change Conference, the Indian government had announced that India’s non-fossil fuel capacity would be 500 GW by 2030. IHC’s investment will support and accelerate the Adani Group’s development plan to supply 45 GW (9% of India’s non-fossil energy) to the country by 2030.

Sagar Adani, Executive Director, Adani Green Energy Limited said, “We are delighted to conclude this historic transaction with IHC. We value IHC’s leading role as a strategic investor in sustainable energy, healthcare, food, infrastructure and energy transition in the UAE. This transaction marks the further strengthening of India-UAE ties and reflects the long history of trade and trust of our people. We continue to share IHC’s strategic vision for India, the Middle East and Africa as we begin this inter-generational relationship.

Adani Electricity Mumbai Limited, the distribution arm of Adani Transmission Limited, has legally contracted to increase the renewable energy position from 3% in FY21 to 60% by FY27. IHC’s investment will support ATL in this transformational journey. Through its wholly owned subsidiary Adani New Industries Ltd., Adani Enterprises Ltd. has invested US$50 billion over the next 9 years to create a new green hydrogen vertical focused on the decarbonization of industrial energy and mobility.

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