Adani Enterprises Ltd Witnessed a Surge in Share Prices as UAE’s International Holding Company (IHC) Boosted Its Stake
Adani Enterprises Ltd saw a remarkable uptick in its stock prices during the early trading hours on Wednesday, as investors expressed their approval of the International Holding Company (IHC) increasing its ownership in the flagship company of the Adani Group. The UAE-based entity, IHC, has now acquired a stake of over 5 percent in Adani Enterprises.
IHC’s subsidiary, Green Vitality RSC, in conjunction with its subsidiaries, Green Enterprises Investment Holding RSC and Green Energy Investment Holding RSC, purchased an additional 0.06 percent stake. This acquisition pushed their combined shareholding to 5.04 percent in Adani Enterprises.
As the news broke, Adani Enterprises shares surged by approximately 5 percent, reaching Rs 2501.40 on Wednesday. However, the stock eventually settled around Rs 2,450 as the trading session progressed, with a total market capitalization of nearly Rs 2.8 lakh crore. In the preceding trading session, the scrip had closed at Rs 2,387.55.
In an exchange filing with the Abu Dhabi Stock Exchange, IHC expressed its belief in Adani Enterprises’ world-leading incubation model as the reason for this strategic increase in stake. IHC, headquartered in Abu Dhabi, emphasized that Adani Enterprises’ inherent strengths in areas such as airports, green hydrogen, data centers, and other verticals position the company well to capitalize on India’s robust growth trajectory.
It’s worth noting that Adani Enterprises’ shares have rallied by approximately 150 percent from their 52-week low of Rs 1,017.10, which they reached in March 2023, following the release of a report by Hindenburg Research. This US-based short seller had accused the Gautam Adani-led Adani Group of financial irregularities and malpractices in its financial statements to artificially inflate the share prices of group companies.
Echoing a similar sentiment, the Adani Group firm affirmed that this recent stake increase validates its role as a global leader in nurturing new businesses. The ongoing relationship with IHC reflects positively on India’s dynamic growth potential and promises substantial returns to Adani stakeholders, as stated by the Adani Group’s flagship company.
As of Wednesday’s high, IHC’s holding in the Adani Group’s flagship company is estimated to be worth approximately Rs 14,500 crore. However, it’s noteworthy that IHC recently divested its holdings in Adani Energy Solutions Ltd and Adani Green Energy Ltd. In April 2022, IHC had initially invested around $500 million each in Adani Green and Adani Energy Solutions (formerly known as Adani Transmission), and subsequently, an additional $1 billion in Adani Enterprises.