Billionaire Gautam Adani gets vote of confidence in $400 million investment from Abu Dhabi firm

Gautam Adani International Holding Co. (IHC) invested $400 million in Adani Enterprises, an Abu Dhabi-based conglomerate controlled by a prominent member of the United Arab Emirates royal family.

The investment represents about 16 percent of the $2.5 billion that Adani’s flagship company plans to raise from a follow-on share sale, a welcome reprieve for the Indian tycoon whose business empire has wiped more than $70 billion in market value after this month stern report Via the Hindenburg Research. The U.S.-based short-seller has accused Adani Group of stock manipulation and accounting fraud.

This is IHC’s second investment trade The partnership comes after a $2 billion investment in Adani Enterprises and its clean energy companies such as Adani Green Energy and Adani Transmission last April.

Syed Basar Shueb, CEO of IHC, said: “Our interest in Adani Group stems from our confidence and belief in the fundamentals of Adani Enterprises.” statement“Over the long term, we see strong potential for growth and added value for our shareholders.”

Adani Enterprises’ follow-on share sale is set to close today, with participation from other Middle Eastern investors including Abu Dhabi Investment Authority and Mubadala Investment expected, Bloomberg News recently reported.

The company said last week that it was “evaluating relevant provisions” under U.S. and Indian law to “take remedial and punitive measures against Hindenburg Research.”A short-seller report on Jan. 24 is said to have sparked a sell-off in Adani Group companies, with founder Gautam Adani’s net worth falling 30% to $88 billion Forbes‘estimate. After ranking third, he is now the eighth richest person in the world.