Shares of two Adani Group firms fell over 2 per cent on, Friday, 29 September after Abu Dhabi-based conglomerate International Holding Company (IHC) said on Thursday that it would sell its stake in Adani Green Energy and Adani Energy Solutions, formerly known as Adani Transmission.
The decision to offload the stake is part of the company’s plan to rebalance its overall portfolio strategy, IHC said.
At 2:05 PM, Adani Green Energy shares were trading 1.98 per cent down at Rs 992.50 on the NSE. Adani Energy Solutions shares were 2.59 per cent down at Rs 809.
On Thursday, IHC said its two subsidiaries, Green Energy Investment Holding and Green Transmission Investment Holding, have signed an agreement with a buyer to dispose of their investments in Adani Green Energy and Adani Energy Solutions. IHC didn’t reveal the name of the buyer to whom it would sell its stake.
Green Energy Investment Holding owns a 1.3 per cent stake in Adani Green, which is worth Rs 2,019 crore, based on the company’s Thursday closing price of Rs 1,012 on BSE. Green Transmission Investment Holding owns a 1.4 per cent stake in Adani Energy, which is worth Rs 1,305 crore based on the closing price of Rs 830 on BSE.
In April 2022, IHC had invested Rs 3,850 crore each in Adani Green and Adani Transmission, which means that the Abu Dhabi company will be selling its stake at a loss.
In addition, IHC had also invested Rs 7,700 crore in flagship firm Adani Enterprises for a 3.5 per cent stake. The investment was part of IHC’s plan to explore strategic opportunities in the renewable space across India, the Middle East, and African regions.
In January this year, IHC had invested $400 million in Adani Enterprises’ follow-on-public (FPO), which eventually got called off.
Last week, Adani Green, in which France’s TotalEnergies also owns 19.75 per cent equity, announced hiving off certain renewable assets to its 100 per cent subsidiary, Adani Green Energy 23. TotalEnergies will pay $300 million in Adani Green for a 50 per cent stake in Adani 23, which will acquire 10 gigawatts of renewable energy from its parent.