A Royal Boost

A Royal Boost

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  • Abu Dhabi conglomerate International Holding Company has announced that it will contribute 1.4B AED, or $381.17M, to the follow-on share sale of Adani Enterprises, after the market value of the company was reduced by over $70B.
  • The funding will make up around 16% of the offering and comes after an almost $2B investment in Adani's businesses last year from IHC, which is controlled by a significant member of the emirate's royal family. 
  • Adani is trying to rebuild trust in his ports-to-power venture after a damning analysis by US-based short seller Hindenburg Research, accusing it of market manipulation, accounting fraud, and running a network of managed offshore shell companies in tax havens.

Why it matters

The announcement expands upon an April transaction in which Adani Enterprises raised $944M by issuing preferred shares to IHC, raising 77 billion rupees. The Abu Dhabi-based company also gave Adani Green Energy and Adani Transmission 38.5 billion rupees, equivalent to $471,938,775. It was hoped that the $2.5B share sale, which was set to end on Tuesday, would expand his empire to include all of India but instead, he has been forced to rely on funding from existing investors.


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