Indian billionaire Gautam Adani’s flagship firm Adani Enterprises said on Wednesday its airport unit will raise about $1 billion from investors, including Temasek and BlackRock, in an expansion drive.
The deal values the airport operator at about $18 billion before the investment, with Adani Enterprises selling a stake of up to 5.54% as it steps up investment in businesses from airports to data centres and green hydrogen.
In July, Reuters reported that the group was considering launching a new airline, a move that could reshape competition in a market dominated by IndiGo and Air India.
The funds raised will go to expand and modernise the company’s airport network, develop airport-linked commercial infrastructure and scale adjacent businesses such as ground handling and passenger services.
The capital infusion is expected to lift capacity to about 200 million passengers a year.
Shares of Adani Enterprises climbed 3% to 3,043 rupees on Wednesday, on track for a seventh straight session of gains.
Under the deal, Adani Airport Holdings will issue fresh shares to the consortium of investors, bringing in new capital for the business, while Adani Enterprises remains the controlling shareholder.
Along with Temasek and BlackRock, the investor group also comprises Alpha Wave Global and Premji Invest.
An expansion spree in recent years has turned the Adani airport subsidiary into India’s largest operator by number of airports.
It manages eight airports, including the Mumbai International Airport, accounting for about 25% of India’s passenger traffic and 33% of its air cargo volumes.
India’s other major aviation player, the GMR Group, is the largest operator by number of passengers handled.
The investment by Singapore state investor Temasek comes at a time when its exposure to Indian carrier Air India has sparked a debate in the city-state.
Reuters
