Adani Plans for Airport Sector IPO by 2027
As part of an ambitious growth plan that involves investing $100 billion across industries over the next five years, billionaire Gautam Adani's organization is preparing to IPO its airports sector by 2027.
The largest private-sector airport operator in India, Adani Airport Holdings Ltd., is expected to be spun off and listed by March 2027, according to reports.
The company, which now operates eight airports in India and is owned by the flagship Adani Enterprises Ltd., is set to establish a new terminal on the outskirts of Mumbai in the coming months.
Additionally, the ports-to-power conglomerate has quadrupled the pace of its capital investment plan, aiming to invest $100 billion in five to six years rather than distributing it over ten, as previously announced. Businesses in the energy, logistics, and infrastructure sectors will be scaled up with the capital.
The group headed by the second-richest person in Asia is returning to generating money and expanding quickly, as seen by the expedited investment and IPO ambitions. Short seller Hindenburg Research's corporate fraud claims in 2023 severely damaged it, and in November, the US Department of Justice launched a bribery investigation against its creator, which also caused several of Adani's international projects to fall through.
Following a slew of recent setbacks, there is growing evidence that the Adani Group is operating normally. Last week, Gautam Adani made what looks to be his first major international trip since the DOJ indictment, visiting China to meet with producers of industrial equipment. The itinerary for the trip to China is unclear.
To finance its ambitious investment plan, the Adani Group intends to borrow $30 billion from both domestic and foreign markets.
The remaining funds will be financed by internal accruals, most likely from the group's listed businesses, they added. By 2030, when the metals industry is probably going to be listed as well, newer assets including highways, airports, and renewable energy projects should generate an additional $20 billion in revenue.
Despite navigating the DoJ's ongoing inquiry into its founder, the Adani Group, which has holdings ranging from ports to green energy and cement to media, is also back to attracting foreign investors.
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In April, it raised roughly $750 million for an acquisition, with roughly one-third of the bond issue being subscribed for by BlackRock Inc. Its ports division obtained a bilateral loan of $150 million from DBS Group Holdings Ltd. in May. This month, Adani Airports obtained $750 million from foreign banks through external commercial borrowings.