Abu Dhabi conglomerate International Holding Co (IHC) said on Tuesday it has increased its stake in India's Adani Enterprises to more than 5%, days after it sold its stake in two other Adani Group companies.
IHC said its stake increase in Adani Enterprises Ltd (AEL)reflected its belief in the Indian company's ability to "incubate" and scale up airports, data centres and green hydrogen businesses.
"AEL is poised to uniquely capitalize on India's robust growth journey," IHC said in a statement.
Adani Enterprises is the flagship of billionaire Gautam Adani's business, which is currently facing fraud allegations raised by U.S. short-seller Hindenburg Research in January that the apples-to-airports conglomerate engaged in stock manipulation and had amassed significantly high debt.
With the new investments, the value of IHC's holding in the Adani group's flagship company now stands at around 140 billion rupees ($1.68 billion), as per Tuesday's closing price of its shares, the Adani group said separately in a statement. It said IHC’s increased stake was a "ringing endorsement of the group's robust capex plans, governance and transparency.
The Adani Group has denied all allegations and the Indian markets regulator is investigating under orders of India's Supreme Court.
Last Thursday IHC said it had agreed to sell its investments in Adani Green Energy and Adani Energy Solutions as part of a strategy to rebalance its portfolio.
INVESTORS RETURN
Global investors, spooked by short-seller Hindenburg's allegations, have started to return and invest in port-to-power congolmerate.
Last month, French oil major Total Energies invested $300 million in Adani Green Energy to form a joint venture for development of wind and solar farms. Earlier sovereign fund Qatar Investment Authority(QIA)also invested USD 500 million picking up 2.7% stake in Adani Green Energy.
In August, investment firm GQG Partners bought an 8.1% stake in India's Adani Power for $1.1 billion via block deals, Reuters had reported.