International Holding Company (IHC), a conglomerate based in the UAE, will invest $2 billion as primary capital in three Adani Group companies.
The three "green-focused companies" include Adani Green Energy, Adani Transmission and Adani Enterprises, which are all listed on the National stock Exchange (NSE) and the BSE, according to an exchange filing.
The investment in Adani portfolio companies will be through the preferential allotment route, the filing says.
The boards of Adani Green Energy, Adani Transmission and Adani Enterprises met and approved the transaction on Friday.
IHC will invest ₹3,850 crore in Adani Green Energy, ₹3,850 crore in Adani Transmission and ₹7,700 crore in Adani Enterprises.
The transaction, which is expected to be completed in a month, is subject to shareholder and regulatory approvals.
"This is a landmark transaction and marks a start of a wider relationship between The Adani Group and IHC and attracting further investment from UAE into India," says Sagar Adani, Executive Director, Adani Green Energy. "We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy and energy transition."
The capital will be utilised for pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes.
"This will be a long-term investment in India as the country is driving much innovation globally, including the green energy sector. The opportunity to earn a compelling return on investment in green energy has never been greater," says Syed Basar Shueb, CEO and managing director of IHC.
Shares of Adani Green Energy jumped 7% in the intraday trade to 2,332.85 on the National Stock Exchange. Shares of Adani Transmission and Adani Enterprises were trading 2% higher in the afternoon trade on Friday.
The announcement comes days after billionaire Gautam Adani entered the centibillionaires club — businessmen having a fortune of $100 billion or more.
Adani has also become the richest person in Asia, overtaking Reliance Industries' chairman Mukesh Ambani who entered the $100 billion club in October last year.
The 59-year-old founder of Adani Group made most of his fortune in the past two years after betting on green energy. He joins nine other businessmen in the centibillionaires club, including Tesla CEO Elon Musk and Amazon founder Jeff Bezos.
After the Indian government decided to cut the country’s dependence on fossil fuels, Adani was quick to join the green energy bandwagon and now his conglomerate is on its way to becoming the largest solar power producer in the world.
The group plans to spend 75% capital in green businesses, including $20 billion in renewables, green component manufacturing and enabling infrastructure, over the next decade.
Adani Green Energy, the largest solar power developer in the world, plans to build 45GW renewable capacity by 2030.