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Adani Group plans to hive off airport business, launch IPO

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Synopsis
The conglomerate is expected to raise $500 million through a private placement of shares in Adani Airports Holdings before an eventual initial public offering.
The Adani Group has begun preliminary talks to separate its airport business from holding entity Adani Enterprises Ltd (AEL) as a first step toward listing the unit, according to people with knowledge of the matter.
The conglomerate is expected to raise $500 million through a private placement of shares in Adani Airports Holdings before an eventual initial public offering. Adani controls Mumbai airport, India’s second busiest, as well six regional facilities, and is targeting a valuation of Rs 25,500-29,200 crore ($3.5-4 billion) for the business.
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,” said one of the people cited above. “However, the group is awaiting better air passenger numbers as the Covid pandemic significantly reduced passenger traffic. They would like a year-end listing.”

In the three-five year plan, we would have a total capex in the airports of about ?30,000 crore estimated and the debt from that will be approximately ?20,000-21,000 crore,” Adani Enterprises CFO Robbie Singh said on an investor call in May.
“They are cash-making businesses and they already operate. They have their own capacity to borrow, so from our point of view, our commitment is to the equity portion of the airports, of which a majority of what equity was required we’ve already invested.”
Adani doesn’t see a significant commitment of equity beyond what’sneeded for the development of Navi Mumbai airport “and some equity that is required for the next three years possibly when we take over,” he added.
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