Gautam Adani speaks at the World Congress of Accountants in Mumbai on November 19, 2022.
Gautam Adani has won a vote of confidence from a $400 million investment by International Holding Co. (IHC)—an Abu Dhabi-based conglomerate controlled by a key member of the United Arab Emirates’ royal family—into Adani Enterprises.
The investment—which accounts for about 16% of the $2.5 billion Adani’s flagship company aims to raise from its follow-on share sale—is a welcome reprieve for the Indian tycoon, who has seen about $70 billion of his business empire’s market value wiped out this month following a scathing report by Hindenburg Research. The share sale was fully subscribed despite the U.S.-based short seller accusing the Adani Group of stock manipulation and accounting fraud.
This is IHC’s second investment deal with the group after investing $2 billion in April last year across Adani Enterprises and its clean energy companies such as Adani Green Energy and Adani Transmission.
“Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises,” Syed Basar Shueb, CEO of IHC, said in a statement. “We see a strong potential for growth from a long-term perspective and added value to our shareholders.”
The company said last week that it was “evaluating the relevant provisions” under both U.S. and Indian laws for “remedial and punitive action against Hindenburg Research.” The short seller’s report published on January 24 triggered a sell off in Adani Group companies and slashed founder Gautam Adani’s net worth by 30% to $88 billion, according to Forbes’ estimates. He is now ranked the world’s eighth richest person after holding the No. 3 spot.