The Adani Group is planning to separate its airport business from the parent entity Adani Enterprises Ltd. The Adani Group is eyeing a valuation of ₹ 25,500-29,200 crores ($3.5-4 billion) for the business through an IPO (initial public offering).
Before the initial public offering (IPO), the Adani Group will raise $500 million (approx. ₹3,600 crores) through a private placement of shares in Adani Airports Holdings.
At present, the Group has 6 listed companies with a combined market capitalization of over ₹8.5 lakh crores. The Adani Group’s listed companies are Adani Enterprises, Adani Green, Adani Power, Adani Total Gas, Adani Transmission, and Adani Ports.
The Adani Group is now planning to list Adani Airports on the Indian stock exchanges. The shares of the Adani Group’s companies have seen as much as 200 to 1,100 % rise in share prices over the last 1 year.
“Discussions were held between top company officials and potential investment bankers. At least half a dozen global banks and a bunch of domestic bankers have met top officials recently. However, the Group is awaiting better air passenger numbers as the Covid pandemic significantly reduced passenger traffic. They would like a year-end listing,” sources told The Economic Times.
The Market capitalization of its six listed companies surged by over 5 times in the last year. Recently, Gautam Adani, the founder, and chairman of the Adani Group has become the second-richest Asian with $75.4 billion wealth. Ambani is the richest in India with $85 billion in wealth.
Adani’s Airport Business
The Adani Group currently modernizes and operates 6 airports, namely Jaipur, Ahmedabad, Guwahati, Thiruvananthapuram, Lucknow, and Mangaluru. The Group serves near to 10% of India’s air passenger traffic.
Recently, Adani has acquired a 74% stake in Mumbai International Airport, which operates Chhatrapati Shivaji Maharaj International Airport. This gave Adani ownership of the upcoming Navi Mumbai Airport, in which Mumbai International Airport has a 74% stake.
The Group took control of India’s second-busiest airport of Mumbai as well six regional facilities and is eyeing a valuation of ₹ 25,500-29,200 crores ($3.5-4 billion) for the business through an initial public offering.
Adani Enterprises Ltd (AEL) has a debt of ₹ 15,293 crores out of which Adani Airports has a debt of ₹ 4,100 crores.
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