Abu Dhabi National Energy Co. PJSC (TAQA) is looking to invest in the power businesses of Gautam Adani that are spread across different verticals from thermal generation to clean energy and green hydrogen, a report said on Friday.
TAQA is keen to deploy $1.5-2.5 billion in Adani Group firms or in a single entity, a report in The Economic Times said. Listed on the Abu Dhabi Securities Exchange (ADX), TAQA is an international energy and water company operating in 11 countries across four continents.
TAQA, which is the second largest stock on ADX, is reportedly interested to pick up a stake up to 19.9 per cent in Adani Group firms through a combination of primary infusion into the company and the secondary purchase of shares from promoter family entities.
Adani Energy Solutions’ current value is at Rs 91,660 crore with promoters owning a 68.28 per cent stake. At current prices, a near 20 per cent stake would be mean an investment of Rs 18,240 crore ($2.19 billion). The shares ended on Thursday at Rs 821.70.
The report said both sides are looking to enter into a strategic alliance and work together on projects in North Africa and West Asia.
Established in 2005, TAQA has investments in power generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations. Its assets are spread across the UAE, Saudi Arabia, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, the UK and the US.
By partnering with Adani, a prominent player in the Indian power sector, TAQA can gain a strong foothold in this rapidly developing market.
Also read: Adani Green Energy shares in focus as arm gets nod for commissioning of solar plant in Mundra
Also read: 140% return in 2023! Zensar Tech stock rally defies broader IT sector weakness
On Wednesday, US-based boutique investment firm GQG Partners along with other investors bought an 8.1 per cent stake in Adani Power Ltd for Rs 8,710 crore ($1.1 billion). GQG Partners and other investors bought 31.2 crore shares of Adani Power in a block deal at an average price of Rs 279.17, stock market data showed.
The shares were bought from two Adani family entities — Worldwide Emerging Market Holding and Afro Asia Trade and Investments Ltd., showed bulk deals data on BSE.
Bulk deal data on NSE on Wednesday showed that SB Adani Family Trust sold 1.8 crore shares of Adani Enterprises at Rs 2,300 per piece, and GS GQG Partners International Opportunities Fund picked up 1.2 crore shares of Adani Green Energy for Rs 1100 crore.
On the other hand, Infinite Trade and Investment sold 4.6 crore shares of the company. With an additional purchase of a 3 per cent stake, GQG Partners holding in Adani Transmission rose to 6.54 percent at the end of June.
The US-based boutique investment firm invested Rs 15,446 crore in four Adani Group companies — Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises. Then in June, the GQG Partners along with other investors had bought stakes worth about $1 billion in two group companies — Adani Enterprises and Adani Green Energy.
Also read: Adani Power, Tata Steel, BHEL: How should you trade these buzzing stocks