Abu Dhabi’s IHC to Divest its Shares in Adani Renewable and Transmission Arms

This decision is part of IHC's broader portfolio rebalancing strategy

September 29, 2023


Abu Dhabi’s International Holding Company PJSC (IHC) is set to divest its investments in Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission).

IHC Subsidiaries, Green Energy Investment Holding, and Green Transmission Investment Holding have reached an agreement with a buyer to dispose of their foreign direct investments in Adani Green Energy and Adani Transmission.

IHC said that this decision aligns with its broader portfolio rebalancing strategy. The company is currently completing all procedures and obtaining the regulatory approvals to execute the agreed-upon transaction.

Last April, IHC announced an investment of $2 billion across three companies within the Adani Group. Adani Green Energy had received $500 million, Adani Transmission $500 million, and Adani Enterprises $1 billion through a preferential allotment route. The capital infusion was primarily dedicated to driving the growth of these respective businesses, reinforcing their financial positions, and serving general corporate purposes.

In February, Adani Enterprises confirmed its plan to return the AED1.4 billion (~$381 million) investment made by IHC in its three green energy-focused subsidiaries. Adani Enterprises emphasized its commitment to safeguarding the interests of its investors by returning the proceeds from the follow-on public offering to all investors. This action was taken in response to market volatility and unforeseen circumstances.

Adani Green Energy is set to raise ₹123 billion (~$1.4 billion) through the sale of shares via qualified institutional placement or permissible methods. The company intends to issue a specific number of equity shares, each having a face value of ₹10 (~$0.12), alongside other eligible securities or a combination thereof. The aggregate amount raised will not exceed ₹123 billion (~$1.4 billion) or an equivalent sum.

In July 2023, Adani New Industries, a wholly owned subsidiary of Adani Enterprises, secured a trade finance facility of $394 million from Barclays PLC and Deutsche Bank AG to fulfill the working capital needs of their integrated solar module manufacturing facility.