International Holding Company PJSC (IHC), the Abu Dhabi-based conglomerate, will invest $2 billion as primary capital in three Adani companies — Adani Green Energy, Adani Transmission and Adani Enterprises — through the preferential allotment route.

The boards of each of the three listed entities met and approved the transaction on Friday. The investment is subject to shareholder and regulatory approvals and shall comply with SEBI regulations, a release from Adani Enterprises, the flagship company of the Adani Group stated.

IHC will invest ₹3,850 crore each in Adani Green Energy and Adani Transmission, and ₹7,700 crore in Adani Enterprises in compliance with SEBI regulations.

The transaction is expected to be completed in a month, after all necessary approvals are obtained. The release said that the capital will be utilised for pursuing the growth of the respective businesses, further strengthening the balance sheet, and for general corporate purposes.

‘Inter-generational relationship’

Sagar Adani, Executive Director, Adani Green Energy, said, “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.”

Syed Basar Shueb, CEO and Managing Director of IHC, said, “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.”

IHC was founded in 1998 as part of an initiative to diversify and grow non-oil business sectors in the UAE. In 2021, IHC’s total assets reached AED 87 billion while total revenue grew 303 per cent to AED 28,562 billion for the same period. IHC comprises more than 30 entities and 21,613 employees. It seeks to expand and diversify its holdings across real estate, agriculture, healthcare, food and beverage, utilities, industries, IT and communications, retail and leisure, and capital.