Abu Dhabi National Energy Co. PJSC (TAQA), one of the largest integrated utilities in Europe, West Asia, and Africa, is considering a significant investment in India’s diversified power sector led by Gautam Adani’s companies. This encompasses various domains including thermal generation, transmission, clean energy, and green hydrogen, according to sources familiar with the matter.
Expanding its Presence TAQA, renowned for its extensive presence in Europe, West Asia, and Africa, is also the second-largest stock on the Abu Dhabi Securities Exchange (ADX). It is currently evaluating the prospect of allocating between $1.5 to $2.5 billion to Adani Group firms or possibly in a single entity within the conglomerate. The sources revealed that both TAQA and Adani Group see substantial synergies between TAQA and Adani Energy Solutions, formerly known as Adani Transmission. This potential partnership aims to establish a strategic alliance for collaborative projects in regions like North Africa and West Asia.
Stake Acquisition Plan TAQA’s interest lies in acquiring a stake of up to 19.9% in Adani Energy Solutions. This investment strategy involves a combination of primary capital infusion into the company as well as secondary share purchases from promoter family entities. Currently, Adani Energy Solutions holds a market valuation of Rs 91,660 crore, and the promoter family owns a majority stake of 68.28%. At present market prices, a nearly 20% stake would be valued at approximately Rs 18,240 crore ($2.19 billion). The stock of Adani Energy Solutions remained steady on Thursday, closing at Rs 821.70.
Exploring Synergies The potential investment by TAQA signifies a deep interest in tapping into the diverse and expanding Indian power market. The Adani Group’s wide-ranging portfolio in the power sector presents an opportunity for TAQA to align its expertise and resources, fostering a mutually beneficial collaboration.
Tapping into Growth Potential With India’s ever-increasing demand for power and the country’s emphasis on clean energy, the potential collaboration could facilitate advancements in sustainable and efficient power generation. TAQA’s vast experience and international presence, coupled with Adani Group’s stronghold in the Indian power sector, could contribute significantly to the region’s energy landscape.
Looking Forward As the discussions between TAQA and the Adani Group progress, the prospect of a strategic partnership remains promising. The partnership has the potential to not only enhance the energy capabilities of both entities but also to contribute to the growth and development of India’s power infrastructure and clean energy initiatives.
| Information | Details |
|---|---|
| Company | Abu Dhabi National Energy Co. PJSC (TAQA) |
| Investment Focus | Indian power businesses of Adani Group |
| Sectors Covered | Thermal generation, transmission, clean energy, |
| and green hydrogen | |
| Investment Range | $1.5 billion – $2.5 billion |
| Potential Stake Acquisition | Up to 19.9% in Adani Energy Solutions |
| Investment Strategy | Primary infusion and secondary share purchases |
| Adani Energy Solutions Valuation | Rs 91,660 crore |
| Promoter Stake | 68.28% |
| Estimated Stake Value | Approximately Rs 18,240 crore ($2.19 billion) |
| TAQA’s Global Presence | Europe, West Asia, Africa |
| TAQA’s Stock Status | Second largest stock on Abu Dhabi Securities |
| Exchange (ADX) | |
| Collaboration Synergy | TAQA and Adani Energy Solutions exploring |
| strategic alliance for projects in North Africa | |
| and West Asia | |
| Power Sector Growth Potential | India’s rising demand, focus on clean energy |
| Potential Benefits | Collaboration in sustainable power generation |
| and clean energy initiatives |
