One of the richest men in Asia, Gautam Adani, received an investment from the United Arab Emirates (UAE) Royals in a share sale.
The Adani Group, an Indian multinational conglomerate founded by Gautam Adani, received a $ 400 million (Rs 3,260 crore) investment from Abu Dhabi’s International Holding Co.
Adani has faced losses of $65 billion in its companies’ market value after his rebuttal of a U.S. short-seller’s criticism affected his popularity and failed to pacify investors. The report from United States-based Hindenburg Research flagged concerns about high debt levels on Adani Group. However, Adani dismissed the report.
Hindenburg Research released the report on Adani on January 24, the day Adani Enterprise Ltd’s Rs 20,000-crore follow-on share sale was opened for investors. In three days, the shares of Adani Enterprises fell 16.38 per cent.
IHC, Abu Dhabi’s largest listed company, said it would invest about $400 million in Adani Enterprises’ follow-on share sale. Syed Basar Shueb, the CEO of IHC, said, “We see a strong potential for growth from a long-term perspective and added value to our shareholders.”
IHC said that the investment was confident in the fundamentals of the conglomerate even after the route in share value.
IHC is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s national security adviser and a brother of the UAE’s president.
The bilateral trade relations between the UAE and India have strengthened since CEPA (Comprehensive Economic Partnership Agreement). Last year, the two countries signed CEPA to boost bilateral relations and increase bilateral trade from $60 billion to $100 billion over the next five years.
The Adani Group invested billions into green energy industries in 2022. The company started businesses in power-grid distribution, gas, solar, thermal power and water management.
Adani’s company will build three factories for manufacturing solar modules, wind turbines, and hydrogen electrolyzers. Adani Green Energy (AGEL) commissioned a 450MW hybrid power plant at Jaisalmer in Rajasthan.
The UAE has always supported green energy climate action. The UAE and India have always discussed the energy and climate priorities identified in the agenda of the 28th session of the Conference of the Parties (COP 28) to the United Nations Framework Convention on Climate Change (UNFCCC).
The UAE is set to host COP28 from 30 November to 12 December 2023 in order to address challenges related to climate change. The UAE also signed an agreement with the US to invest $100 billion in clean energy projects and mitigate the effects of climate change.