IHC invests $400 million in Adani Enterprises' FPO

Abu Dhabi's International Holding Company (IHC) today has disclosed that it has invested $400 million in Adani Enterprises' ongoing Rs 20,000-crore follow-on public offer (FPO) via its subsidiary Green Transmission Investment Holding RSC Limited.

IHC, one of Abu Dhabi's most valuable listed companies, was an investor in Adani Enterprises' share offering's anchor book as well.

Syed Basar Shueb, Chief Executive Officer, IHC said, "Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises Ltd; we see a strong potential for growth from a long-term perspective and added value to our shareholders".

The transaction will be subject to the completion of all necessary procedures post all the regulatory approvals are obtained, the company said in a statement. This is the second investment deal IHC has completed with Adani Group after last year's $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 Indian exchanges.

Meanwhile, the FPO of Adani Enterprises was subscribed 2% on day 2 and it will close tomorrow. As per media reports, CFO Singh expressed confidence that the issue will face no hurdles in seeing full subscription, despite the share prices falling much below the lower end of the price band.

Today, shares of Adani Enterprises were ended 4.7% higher after losing nearly 20% over Thursday and Friday. The stock was falling below the lower end of the FPO price band of Rs 3,112.