While IHC did not disclose the name of the buyer and the value of the deal, people with knowledge of the matter said the investor could be exiting at a steep loss given that stocks of both Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission) were trading much below the price at which it had invested in the companies last year.
IHC said in a letter to the Abu Dhabi Securities Exchange that it has entered into a definitive agreement with a buyer to sell its investments in Adani Green Energy and Adani Energy Solutions as part of its portfolio rebalancing strategy.
ET’s queries emailed to Adani Group did not elicit a response till press time.
IHC holds a 1.26% stake in Adani Green and 1.41% in Adani Energy Solutions, as of June 30. Its investment in the two companies was worth around ₹3,327 crore, as per prices at market closing on Thursday, 57% lower than ₹7,700 crore invested in May 2022.
Value of Stake in Adani
At that time IHC had invested Rs 15,400 crore (around $2 billion) in three Adani companies – Rs 3,850 crore each in Adani Green Energy and Adani Energy Solutions, and Rs 7,700 crore in Adani Enterprises. IHC did not disclose any plans regarding its stake in Adani Enterprises, the Ahmedabad-based conglomerate’s flagship company which also incubates the group’s new businesses. The company holds a 3.53% stake in Adani Enterprises, which is worth about Rs 9,937 crore based on Thursday’s market price, a growth of about 29% over the original investment.
Adani Group stocks took a beating in late January, after US-based short-seller Hindenburg Research published a report accusing the conglomerate of fraud and stock price manipulation using offshore entities.
Adani Group has denied all allegations. While most of the group stocks have recovered from the lows following the Hindenburg accusations, only Adani Ports and Adani Power have regained the levels prior to the publication of the report.
Adani Green Energy shares closed at Rs 1,010.65 apiece on the BSE on Thursday, down 47% compared with the stock price on January 23, 2023, a day before Hindenburg Research made its allegations public. Adani Energy Solutions closed at Rs 830.15, down 70% from January 23, while Adani Enterprises was down 28%, closing at Rs 2,473.25. Adani Green and Adani Energy Solutions are down about 56% and 63%, respectively, compared to the price on May 17, 2022, when IHC announced the completion of its investment. Adani Enterprises has gained about 26% since then.
