Abu Dhabi-based IHC has increased its stake in the Adani group’s flagship incubator Adani Enterprises to above 5% and has been a consistent buyer in the stock over the past few months, lapping up the shares of this group company from the open market. The value of its holding in the company stands at around Rs 14,000 crore.

It first invested in the company in May 2022 by buying 3.52% of the stock for Rs 7,700 crore, the value of which now stands at Rs 9,600 crore — 25% higher. The fund has increased its holding to over 5% through open market purchases over the past few months.

This incremental investment is worth more than Rs 4,000 crore. This is more than what the company is expected to fetch from a stake sale in the other two smaller group companies, Adani Green Energy and Adani Energy Solutions. It holds 1.26% in Adani Green and 1.41% in Adani Energy Solutions. The value of these stakes is around Rs 3,200 crore. IHC had said that the sale of its stake in the two group companies was part of a portfolio rebalancing strategy. Later, it clarified that its partnership with Adani and dedication to the Indian market remain steadfast.

“We write to inform you that International Holding Company has increased its stake in Adani Enterprises Ltd (AEL) to above 5%. This strategic increase reflects IHC’s conviction in the world-leading incubation model of AEL and we believe in the inherent strength of Airports, Data Centres, Green Hydrogen and various other verticals being incubated under AEL and that AEL is poised to uniquely capitalize on India’s robust growth journey. IHC continues to explore unique investment opportunities in India with the goal to maximize stakeholders’ return,” it said.

Adani is delighted with IHC’s decision to enhance its investment in Adani Enterprises Ltd (AEL), which it says 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. As per AEL, the group sees IHC’s increased stake as a ringing endorsement of its 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 all stakeholders.