Adani Group firms Adani Energy Solutions and Adani Power on Friday refuted a report saying Abu Dhabi's TAQA may invest up to $2.5 billion in the conglomerate's power units.
"We wish to clarify that the Company is not engaged in any discussion with Abu Dhabi National Energy Co. PJSC (TAQA), for their investment in the Company," said Adani Energy Solutions and Adani Power said in separate stock exchange filings.
Quoting sources, Economic Times reported on Friday that Abu Dhabi National Energy Company PJSC, known as TAQA, is evaluating an investment of up to $2.5 billion in the power businesses of Gautam Adani.
"The investment, anywhere between $1.5 billion to $2.5 billion, could be made in single or multiple group businesses, including picking up a near-20% stake in Adani Energy Solutions the report said, sending shares of the company up as much as 8.73%," said the report.
TAQA said there is "no truth to the speculated transaction" in an emailed response to Reuters.
Adani's power and energy businesses include entities like Adani Energy Solutions, formerly known as Adani Transmission Ltd, Adani Power and Adani Green Energy, but both sides reportedly believe there is maximum synergy between TAQA and Adani Energy Solutions, the report said.
TAQA may acquire a stake through a combination of primary infusion and secondary purchase of shares from promoter family entities, the report added.
The company's founding shareholders, or promoters, hold a 62.52% stake in the company, which includes Gautam Adani's family trust's ownership of 53.93%.
A likely 20% stake in Adani Energy Solutions will amount to Rs 18,343 crore, according to Thursday's closing levels at Rs 822.20.