QIA Unit Buys $474 Million Stake in Adani’s Green Arm

Qatar Investment Authority bought a 2.7% stake in Adani Green Energy Ltd. for about 39.2 billion rupees ($474 million) through a block deal on Monday, according to stock exchange data.

INQ Holding, a unit of Qatar’s sovereign fund, bought more than 42.6 million shares of Adani’s green energy arm at 920 rupees each as the embattled power-to-port conglomerate seeks international backing in a bid to recover from a scathing shortselling attack earlier this year. Infinite Trade and Investment Ltd., a founder group company of Adani Green, sold 44.9 million shares Monday, BSE data showed.

The latest QIA investment would serve as a vote of confidence for billionaire Gautam Adani, who has been attempting a comeback from the crisis triggered by Hindenburg Research. The US-based short seller in January leveled fraud allegations against Adani Group, which has denied any wrongdoing. It would also mark another major investment into the Indian tycoon’s conglomerate after GQG Partners. Economic Times had reported the QIA deal earlier Monday.

Separately, Adani Green last month rolled up plans to raise 123 billion rupees ($1.5 billion) to fund expansion. By selling shares through qualified institutional placement, or QIP, the renewable energy unit is looking to bring on board more institutional investors and attract more research analysts to cover the firm, a person familiar with the matter had said. Only two analysts currently track the company, according to data compiled by Bloomberg.

For QIA, buying a stake in Adani Green is in line with its plans to increase its exposure in India. It is among parties that are in talks to buy a minority stake in Reliance Retail Ventures, Bloomberg News reported last month. Reliance Retail, headed by billionaire Mukesh Ambani’s daughter, is India’s biggest brick-and-mortar retailer. The QIA ranks as the world’s 10th-largest sovereign wealth fund, according to SWF Institute data.

Source from: Bloomberg