Adani Enterprises Share Price: Abu Dhabi's IHC Increases Stake Above 5% In Gautam Adani's Flagship Firm

Adani Group's flagship company Adani Enterprises (AEL) which holds its port-to-energy businesses, has extended its rally in second half of Wednesday's trading session. The stock crossed Rs 2,500 mark and has advanced by a whopping 5% so far in the day. The robust upside in AEL can be attributed to optimism showed by Abu Dhabi's IHC who increased its stake in the company, taking it above 5%.

AEL is billionaire Gautam Adani's most valued stock in terms of market capitalisation. And IHC has been optimistic about AEL since 2022.

AEL shares traded at Rs 2,458 apiece up by 2.95% on BSE, at the time of writing. The stock zoomed by at least 4.8% with an intraday high of Rs 2501.40 apiece. Its market cap is nearly Rs 2.8 lakh crore.

In its regulatory filing on Tuesday, IHC said, "We write to inform you that International Holding Company has increased its stake in Adani Enterprises Ltd (AEL) to above 5%."

According to IHC, this strategic increase reflects IHC's conviction in the world-leading incubation model of AEL and we believe that the inherent strength of Airports, Data Centers, Green Hydrogen, and various other verticals being incubated under AEL and that AEL is poised to uniquely capitalize on India's robust growth journey.

It added, "IHC continues to explore unique investment opportunities in India with the goal to maximize stakeholders' return."

IHC has been optimistic about Adani Enterprises for quite some time now. It first showed interest in the company in March last year, when it purchased 3.53% or 4,01,91,038 equity shares aggregating to Rs 7,700 crore through its other subsidiary, Green Enterprises Investment Holding Rsc Limited.

Also, in the June 2023 quarter, IHC purchased an additional 1,15,96,181 equity shares or 1.02% stake in Adani Enterprises through its subsidiary Green Vitality Rsc, in the open market.

Till Q1FY24, IHC's shareholding in Adani Enterprises stood at 5,17,87,219 equity shares or 4.55% in the company.

Now, IHC's stake is above 5% in AEL!

Interestingly, while Adani Enterprises stays in IHC's portfolio, the UAE-based company plans to sell stakes in Adani's energy stocks namely Adani Green Energy and Adani Transmission now known as Adani Energy Solutions.

Last week, in its exchange filing, IHC said, "Under the overall portfolio rebalance strategy of IHC, Green Energy Investment Holding RSC, and Green Transmission Investment Holding, subsidiaries of IHC Capital Holding LLC, have entered into a definitive agreement with a buyer to dispose of its FDI investment in Adani Green Energy and Adani Transmission, respectively." Although, IHC did not reveal the name of the buyer.