International Holding Company (IHC), the diversified Abu Dhabi-based conglomerate, on Monday said it would be investing $400 million (Rs 3,200 crore) into the Adani Enterprises’ Rs 20,000-crore follow-on public offer (FPO) through its subsidiary Green Transmission Investment Holding RSC. IHC will subscribe to 16 per cent of Adani Enterprises’ $2.5 billion FPO. This would be IHC’s first investment of the year, the conglomerate said.
The IHC announcement has come amid a muted response to India’s largest ever FPO. The FPO received a total bids of 13,98,516 shares so far on Day 2, which is a mere 3 per cent of the offer size of 4,55,06,791 shares. The issue is scheduled to conclude on Tuesday. Marketmen tracking the FPO said the issue can still sails through if the offer gets at least 90 per cent bids. The Adani group flagship is banking upon institutional and long-term strategic investors for the issue to get required subscription. It already raised Rs 5,985 crore by allotting shares to anchor investors.
IHC said it continues to scale and diversify its investments locally and internationally, focusing on Europe, Africa, Asia, and South America Markets in 2023.
“Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises; we see a strong potential for growth from a long-term perspective and added value to our shareholders,” said Syed Basar Shueb, Chief Executive Officer at IHC.
This is the second investment deal International Holding Company has completed with Adani Group after last year’s $2 billion investment in three green-focused companies of the Adani Group, including Adani Green Energy, Adani Transmission, and Adani Enterprises, which are all listed on the Bombay Stock Exchange and National Stock Exchange of India.
“The advantage of the FPO is the historical reference for the company’s earnings report, company’s management, business practices, and much data to bank on before making any investment decision,” Shueb said.
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IHC said it continues to look ahead this year as its ambitious progression strategy gets well underway, with an expected further acquisition across four continents by the end of the year alone, focusing on a fast-growing economy, rapidly expanding equity markets, and top investment destination.
“We are watching the international market closely for new prospects, and we will continue exploring further opportunities outside our traditional market in 2023,” Shueb added. IHC aims to increase its global acquisition by 70% in 2023, with the clean energy and food processing sectors being a key focus.
