Adani Green Energy, Adani Energy drop up to 2% as IHC looks to sell shares

Shares of Adani Green Energy and Adani Energy Solutions were under stress on Friday after Abu Dhabi-based conglomerate International Holding Company (IHC) said that it would sell its stake in two Adani group entities. In a disclosure to Abu Dhabi Securities Exchange, IHC said that it would dispose of its investment in Adani Green Energy and Adani Energy Solutions, formerly known as Adani Transmission through its two subsidiaries, Green Energy Investment Holding RSC Ltd and Green Transmission Investment Holding RSC Ltd. The stake sale is part of the company’s strategy to rebalance its overall portfolio, IHC said in its exchange filing.

“Under the overall portfolio rebalancing strategy of IHC, Green Energy Investment Holding RSC Ltd and Green Transmission Investment Holding RSC Ltd, subsidiaries of IHC Capital Holdings LLC, have entered into a definitive agreement with a buyer to dispose of its foreign direct investment (FDI) in Adani Green Energy and Adani Transmission,” IHC informed ADX on Thursday.

However, IHC, one of the Middle East and Africa's large conglomerates, did not disclose the buyer's name.

As per the exchange data, Green Energy Investment Holding RSC owned 2,00,18,198 equity shares, or 1.26% stake, in Adani Green Energy, as on June 30. Green Transmission Investment Holding RSC held 1,56,82,600 shares, or 1.41% stake, in Adani Energy Solutions at the end of June quarter.

Based on Thursday’s closing price, the value of IHC’s holdings in these two Adani Group companies is pegged at around ₹3,327 crore.

Last year, IHC had invested almost $2 billion in three companies controlled by billionaire Gautam Adani, including Adani Green Energy, Adani Transmission, and the group’s flagship firm, Adani Enterprises. Later in January this year, it also proposed investing $400 million into the Adani Enterprises’ ₹20,000 crore follow-on public offering (FPO), which was later withdrawn following an adverse report by U.S.-based Hindenburg Research.

Reacting to the news, shares of Adani Green Energy declined as much as 1.85% to hit a low of ₹993 on the BSE, while the market capitalisation dipped to ₹1.57 lakh crore.

In a similar trend, Adani Energy Solutions shares dropped 2.3% to touch a low of ₹811 in the first two hours of trade on the BSE. The m-cap stood at ₹90,873 crore at the time of reporting.

While Adani Green Energy shares are down 59% from its 52-week high of ₹2,405.40 touched on September 30, 2023, Adani Energy Solutions tumbled 78% against its 52-week high of ₹3,755.25 hit on September 29, 2023. In the calendar year, Adani Green Energy fell over 47%, while Adani Energy Solutions lost nearly 9%.

Meanwhile, other listed entities of Adani Group witnessed mixed trends. While Adani Ports, ACC, Ambuja Cements, and NDTV rose up to 1.5%, Adani Enterprises, Adani Power, Adani Total Gas and Adani Wilmar shares were down nearly 1%. 

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