Adani Enterprises shares surge 5% after UAE's IHC raises stake

Shares of Adani Enterprises Ltd rose sharply during the early trading session on Wednesday as investors gave a thumbs up to International Holding Company (IHC) increasing stake in the Adani Group's flagship company. The UAE-based entity IHC now holds more than 5 per cent stake in Adani Enterprises.

IHC arm Green Vitality RSC, along with its subsidiaries Green Enterprises Investment Holding RSC and Green Energy Investment Holding RSC acquired a 0.06 percent stake, taking their combined shareholding to 5.04 per cent in Adani Enterprises.

Following the announcement, shares of Adani Enterprises surged about 5 per cent to Rs 2501.40 on Wednesday, before hovering around Rs 2,450 as the session progressed with a total market capitalization of close to Rs 2.8 lakh crore. The scrip had settled at Rs 2,387.55 in the previous trading session.

IHC, in an exchange filing with Abu Dhabi Stock Exchange said that this strategic increase reflects IHC's conviction in the world-leading incubation model of Adani Enterprises (AEL). The Abu Dhabi-based IHC added that the inherent strength of airports, green hydrogen, data centres and many other verticals of Adani Enterprises can help the company to capitalise on India’s robust growth journey.

Shares of Adani Enterprises have rallied about 150 per cent from its 52-week lows at Rs 1,017.10 it had hit in March 2023 after the Hindenburg Research's report. The US based short seller had accused Gautam Adani led Adani Group of financial frauds and malpractices in its account books to inflate share prices of the group companies.

Seconding the similar notion, the Adani Group firm said that the fresh stake hike validated its standing as a global leader in incubating new businesses.  This inter-generational relationship with IHC reflects well on India's dynamic growth potential and offers substantial returns to Adani stakeholders, said the Adani Group's flagship firm.

IHC's holding in the Adani group's flagship company is now valued at around Rs 14,500 crore, based on Wednesday's high. However, IHC recently exited Adani Energy Solutions Ltd and Adani Green Energy Ltd. In April 2022, IHC invested about $500 million each in Adani Green and Adani Energy Solutions, then known as Adani Transmission, and a further $1 billion in Adani Enterprises.

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