Billionaire Gautam Adani-led Adani group is likely to raise $500 million via a private placement of shares in Adani Airports Holdings before a final initial public offering
Billionaire Gautam Adani-led ports-to-energy conglomerate Adani Group has reportedly started initial discussions to bifurcate its airport business from holding entity Adani Enterprises Ltd (AEL) in a bid to list the entity separately.
With investments in infrastructure, transportation, utilities, and energy, the Ahmedabad-based conglomerate is likely to raise $500 million via a private placement of shares in Adani Airports Holdings before a final initial public offering (IPO). The group took control of India’s second-busiest airport of Mumbai as well six regional facilities, and is eyeing a valuation of Rs 25,500-29,200 crore ($3.5-4 billion) for the business, people familiar with the matter told ET. In 2019, the group entered the airport sector.
Citing a person with direct knowledge of the matter, the publication reported that talks were held between top company executives and potential investment bankers. Recently, six global banks and several domestic bankers have met top officials. “However, the group is awaiting better air passenger numbers as the Covid pandemic significantly reduced passenger traffic. They would like a year-end listing,” he added.
It is worth noting that the conglomerate has made its presence felt in the airports business within a period of two years. Earlier, Adani Airports won the mandate to modernise and operate six airports—Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram. Plus, Adani Airport Holdings Ltd (AAHL) acquired an additional 23 per cent stake in Mumbai International Airport Ltd. (MIAL) in February this year, which manages Chhatrapati Shivaji Maharaj International Airport. This provided Adani ownership of the upcoming Navi Mumbai Airport, in which MIAL holds 74 per cent stake.
Adani Airports has a debt of Rs 4,100 crore while that of Adani Enterprises Ltd (AEL) amounts to Rs 15,293 crore.