Abu Dhabi-based IHC has increased its stake in India-based Adani Group’s flagship incubator Adani Enterprises Ltd (AEL) to above 5%, it said on Tuesday.

IHC has been buying the stock over the past few months from the open market; the value of its holding is more than $1.7 billion, as per Wednesday’s closing price.

IHC first invested in the company in May 2022, buying 3.53% for $1 billion. The value of this now stands at $1.2 billion. The fund increased its holding to 5.04% through open market purchases; this incremental investment is worth more than $500 million, it said.

This is more than what the company is expected to fetch from the stake sale in Adani Green Energy and Adani Energy Solutions. It holds 1.26% in Adani Green and 1.41% in Adani Energy Solutions; the value of the stake is around $380 million based on Wednesday’s closing.

IHC said the stake sale was part of a portfolio rebalancing strategy, adding that its partnership with Adani would continue.

“We write to inform you that International Holding Company has increased its stake in AEL to above 5%. This reflects IHC’s conviction in the incubation model of AEL and we believe in the inherent strength of airports, data centers, green hydrogen, and other verticals being incubated by it. AEL is poised to uniquely capitalise on India’s robust growth journey,” it said.

An Adani Group spokesperson said: “We are delighted with IHC's decision to enhance its investment in Adani Enterprises Ltd, which further validates AEL's standing as a global leader in incubating new businesses, particularly in sustainable infrastructure, developing global aviation infrastructure and equitable energy transition. We see IHC’s increased stake as a ringing endorsement of our robust capex plans, governance and transparency. This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders.”

Earlier, French major Total Energies invested $300 million in Adani Green Energy Ltd (AGEL). Sovereign fund Qatar Investment Authority (QIA) invested $500 million for a 2.7% stake in AGEL while GQG Capital Partners invested $900 million for 6.4%. – TradeArabia News Service