Dubai, UAE—Shares of Indian conglomerate Adani Group’s Adani Enterprises gained 5.3 percent after UAE’s International Holding Company announced it would be investing AED1.4 billion ($400 million) into the Enterprise’s Further Public Offering.
IHC said in a statement that it would make the investment through its subsidiary Green Transmission Investment Holding. The IHC will subscribe to 16 percent of Adani Enterprises’ $2.5 billion FPO.
“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,” IHC said in a statement.
“Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises. 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.
This is the second investment deal International Holding Company 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.
Media reports said the FPO so far received 3 percent subscription. Market experts say the issue can sail through if the offer gets at least 90 per cent bids.
Adani Group fails to stem rout
Gautam Adani’s vast Indian business empire lost billions of dollars more in value on Monday after its rejection of claims of widespread fraud failed to reassure investors, AFP reported.
The slump was sparked by a report by US investment group Hindenburg Research that last week alleged “brazen stock manipulation and accounting fraud scheme over the course of decades”.
The three-day selloff has now erased about $71 billion in market value, according to Bloomberg News. Last week Adani’s firms recorded a slump of around $50 billion.
The fire sale also saw the school- dropout-turned-tycoon, who is seen as close to Prime Minister Narendra Modi, tumble from third on the Forbes real-time rich list.
On Monday the 60-year-old was at ninth position in the ranking, which put his wealth at $85.2 billion.