Adani receives crucial backing as UAE royals buy $400 million in share sale
Indian billionaire Gautam Adani’s embattled group has grabbed onto a $400-million investment by Abu Dhabi’s International Holding Co., which is controlled by a key member of UAE’s royal family, in its flagship firm Adani Enterprises’ share sale in order to restore confidence in the group that saw nearly a whopping $70-billion drop in value after a tiny New York investment firm came out with a damning report.
60-year-old Adani, who was just days back the third richest person in the world, has seen billions wiped off his fortune. US short-seller Hindenburg Research, whose previous targets include EV makers Nikola and Lordstown Motors, has accused the conglomerate of engaging in decades of stock manipulation and accounting fraud, as well as operating a web of controlled offshore shell entities in tax havens.
Although the Adani Group has countered the allegations, calling them “nothing but lies”, the response couldn’t substantially stem the uproar.
The recent funding from IHC will represent nearly 16% of the flagship firm’s offering and follows an almost $ 2 billion investment in the group’s companies last year.
“We see a strong potential for growth from a long-term perspective and added value to our shareholders,” IHC’s CEO Syed Basar Shueb said in a statement, adding the company was confident in the fundamentals of Adani Enterprises.
The UAE-based company is led by Sheikh Tahnoon Bin Zayed Al Nahyan, the country’s national security advisor and brother to the president, Sheikh Mohamed bin Zayed Al Nahyan.
Last year, on 10 October, Adani Group Chief Financial Officer Jugeshinder ‘Robbie’ Singh laid out the growth plans of the conglomerate, mentioning the targets to invest $50-70 billion in green hydrogen business and another $23 billion in green energy over the next 5 to 10 years.
In recent news, the Emirates announced plans to expand its climate and clean energy collaboration with India to support New Delhi’s ambition of 450 GW of renewable energy by 2030. The ambition alines with the UAE’s plans to expand its clean energy capabilities to address the goals outlined in the UAE Net Zero by 2050 strategic initiative.
Moreover, the signing of the UAE-India Comprehensive Economic Partnership Agreement (CEPA) last year is expected to help the two countries improve bilateral trade.