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Abu Dhabi-based conglomerate International Holding Company will invest USD 2 billion as primary capital in three Adani Group firms - Adani Green Energy, Adani Transmission and Adani Enterprises, Adani Group said.
The boards of Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL) and Adani Enterprises Ltd (AEL) on Friday met and approved the transactions.
"The investment is subject to shareholder and regulatory approvals and shall comply with SEBI regulations," Adani Group said in a statement.
International Holding Company (IHC) will make the investment through the preferential allotment route.
"We are delighted to commence this inter-generational relationship with IHC. We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy and energy transition. This is a landmark transaction and marks a start of a wider relationship between The Adani Group and IHC and attracting further investment from UAE into India," said Sagar Adani, Executive Director, AGEL.
The three Adani companies - AGEL, ATL and AEL - are market leaders in their business sectors and span the Adani Group's green portfolio.
Every one of these three businesses has the core aspect of ESG woven into its operations. This investment is a testament to the IHC's and the Adani Portfolio's shared vision and commitment to invest in sustainable companies that are leading the charge in energy transition, the Adani Group statement noted.
IHC proposes to invest Rs 3,850 crore in AGEL, Rs 3,850 crore in ATL and Rs 7,700 crore in AEL, in compliance with SEBI regulations. The transaction is expected to be completed in a month after all necessary approvals are obtained. The capital will be utilized for pursuing the growth of the respective businesses, further strengthening the balance sheet and for general corporate purposes.
"This will be a long-term investment in India as the country is driving much innovation globally, including the green energy sector. The opportunity to earn a compelling return on investment in green energy has never been greater. We are confident that Adani companies will play a significant role in unleashing India's total green energy potential, reflecting positively on our shareholders' commitment," said Syed Basar Shueb, CEO and Managing Director of International Holdings Company.