Adani Enterprises Surges 3% as Abu Dhabi Fund’s Now Hold Over 5% Stake; IHC Raised Stake

Adani Enterprises experienced a noteworthy surge of over 3% in its share price on Wednesday, following the news of Abu Dhabi’s International Holding Company (IHC) increasing its stake in the company to over 5%. In a filing to the Abu Dhabi Stock Exchange, IHC expressed its confidence in Adani Enterprises’ world-leading incubation model and its conviction in the company’s potential.

IHC’s subsidiary, Green Vitality RSC Ltd., in conjunction with its subsidiaries, Green Enterprises Investment Holding RSC Ltd. and Green Energy Investment Holding RSC Ltd., acquired an additional 0.06% stake, elevating their combined shareholding to 5.04% in Adani Enterprises. Considering Tuesday’s closing price, IHC’s holding in the flagship company of the Adani Group is estimated to be valued at approximately Rs 14,000 crore with these new investments.

IHC emphasized its belief that Adani Enterprises’ inherent strengths, which include airports, data centers, green hydrogen, and other verticals, are well-positioned to capitalize uniquely on India’s robust growth trajectory.

This development comes shortly after IHC divested its stakes in two other Adani Group companies. Last week, IHC revealed its intent to sell its 1.26% stake in Adani Green Energy Ltd and its 1.41% stake in Adani Energy Solutions, as part of a portfolio rebalancing strategy.

IHC continues to explore distinctive investment opportunities in India with the objective of maximizing returns for its stakeholders, according to an exchange filing by IHC.

The Adani Group expressed its satisfaction with IHC’s decision to expand its investment in Adani Enterprises Ltd (AEL), highlighting AEL’s status as a global leader in incubating new businesses, particularly in sustainable infrastructure, the development of global aviation infrastructure, and promoting an equitable energy transition.

A spokesperson from the Adani Group remarked, “This inter-generational relationship with IHC reflects well on India’s dynamic growth potential and offers substantial returns to our stakeholders.”

Technical details of Adani Enterprises’ share performance indicate that in the previous session, the company’s shares closed at Rs 2,387.10, marking a 1.11% decline. Despite this, the stock has witnessed a 40% surge in the last six months, although it has fallen by 37.86% year-to-date. The relative strength index (RSI) for the stock stands at 38.2, indicating that it is currently trading within neither the overbought nor oversold territory.

Adani Enterprises’ 1-year Beta sits at 2.54, signifying high volatility. The stock is currently trading below its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages, as per Trendlyne data.

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