image source, Getty Images
The International Holding Company, linked to the Abu Dhabi royal family, has announced an investment of Rs 3,260 crore in the Adani Group.
The company has invested in Adani Group’s Rs 20,000 crore follow-on public offer (FPO).
By Monday’s close, only 3% of these FPO shares were bought.
But after this the International Holding Company, linked to the Abu Dhabi royal family, announced that it would invest in the Adani Group.
“Our interest in Adani Group is driven by our confidence in the financial health of Adani Enterprises. We believe the company has good prospects for long-term growth,” said Syed Bazar Shuayeb, CEO of the company.
The company has decided to invest at a time when Adani Group is facing economic challenges from all sides.
image source, REUTERS/AMIT DAVE
Was the Hindenburg Report a loss?
The US forensic finance agency Hindenburg last week leveled serious allegations of financial irregularities against the Adani Group.
Since then there has been a decline in the shares of companies associated with the Adani Group.
The Times of India reported that Adani Group’s market capitalization registered a 29 percent decline in three business days, January 25, 27 and 30.
It is said to be around 5.6 lakh crore rupees in Indian value. The company is continuously making efforts to maintain the confidence of the investors in this regard.
The Adani Group issued a 413-page explanatory statement in this regard on Sunday evening. It called the Hindenburg Report an attack on India.
However, even after this, Adani Group’s shares fell on Monday, registering a loss of Rs 1.4 lakh crore in its market capitalisation.
But after the investment announcement by Abu Dhabi’s IHC, some other family firms have also announced investments in the Adani Group.
Some family firms based in Dubai and India are also likely to invest Rs 9,000 crore in Adani Group’s FPO, The Hindu Business Line reported on Tuesday.
image source, Getty Images
IHC in Adani Group Investment is not new
This is not the first time the company, which is linked to Abu Dhabi’s royal family, has invested in the Adani Group.
Last year, the group invested $2 billion in Adani Enterprises and other Adani Group companies.
The company is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, brother of the UAE president, who is the UAE’s National Security Adviser.
The company has rapidly climbed the ladder of success on Abu Dhabi’s stock market over the past few years. The company has come to dominate Abu Dhabi’s stock market.
The company is looking to increase its investment overseas by 70 percent this year, according to a Times of India report.
While making foreign investments, the company wants to give special attention to clean energy and food processing sector.
But questions have been raised about the company ever since it announced its investment in the Adani Group.
image source, Getty Images
Company with 40 employees
According to media reports related to the company, only forty people worked in the company till three years ago.
Until three years ago many people would not have heard of International Holdings. The company had operations ranging from fish farming to food and real estate businesses, according to a report in the Financial Times.
But now the Abu Dhabi-listed conglomerate has a market capitalization of more than $240 billion.
In terms of market capitalization, the company is ahead of international companies such as Siemens and General Electric.
Since 2019, the company’s stock has registered a 42,000 percent gain.
In the Middle East, the company is now second only to Aramco, Saudi Arabia’s national oil company.
image source, IHC
International Holding Company
What’s the secret to skyrocketing success?
The reason for the enormous success of the International Holding Company is an enigma. Less information is available about the company’s economic success in other countries of the world.
At the same time, people associated with the financial world of Abu Dhabi do not have much information about the progress of this company.
“No one knows how the company grew so fast,” an international banker based in the Gulf told the Financial Times.
The company’s CEO in 2019, Syed Basser Shuyeb, describes the company’s progress as ‘outstanding’.
“We are not paying any kind of dividend. The profits in 2020, 2021 have been reinvested. We are trying to build a giant here… we are trying to become a global giant,” he said.
However, some see the company as a ‘blurred line’ between business and power in Abu Dhabi, the capital of the United Arab Emirates.
Some experts say Dubai authorities have backed away from the prospect of linking their stock exchange to the ADX because of concerns about the giant growth in the company’s market capitalization.
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