Adani Airport to raise US$1 billion from Temasek, BlackRock, among others
The investors will subscribe to new shares in three tranches, with final tranche expected by July 2027
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[MUMBAI] The Adani Group’s airport arm is raising 98.3 billion rupees (US$1 billion) from global investors in its first major deal since founder Gautam Adani settled US legal probes, underscoring the conglomerate’s push to restart expansion plans.
Adani Airport will sell a 5.54 per cent stake to a consortium including Alpha Wave Global, Premji Invest, Temasek and BlackRock-managed funds, valuing the business at about US$18 billion, according to a company statement on Wednesday (Sep 9).
The investors will subscribe to new shares in three tranches, with the final tranche expected by July 2027.
Milestone
The deal marks the first foreign investment into the airport unit, a milestone for a business that has become central to the group’s infrastructure strategy.
Adani Airport is India’s largest private airport operator by number of airports, managing eight facilities including in Mumbai and handling roughly 96 million passengers annually.
The proceeds will support airport modernisation and capacity expansion to serve about 200 million passengers annually.
Shares of parent Adani Enterprises rose as much as 4.2 per cent in Mumbai on Wednesday, the most since May 26.
The new investors help accelerate the company’s long-term build-out, according to Jeet Adani, non-executive director at Adani Airport.
“With the backing of these partners, we will continue to invest ahead of that growth, scaling our infrastructure, city-side developments and non-aeronautical businesses to build one of the world’s leading integrated airport platforms,” he said in a statement.
The fundraising comes as billionaire Gautam Adani’s conglomerate resolves a series of legal overhangs that had weighed on investor sentiment.
In May, Adani Enterprises reached a US$275 million settlement with the US Department of the Treasury over apparent sanctions violations related to liquefied petroleum gas shipments linked to Iran.
Separately, the US Justice Department dropped criminal charges against Gautam Adani and his nephew related to solar energy contracts in India.
The airport business has also outlined broader expansion plans beyond aviation.
In June, the company said it would invest 200 billion rupees to build integrated city-side developments across its network, including in Mumbai, Navi Mumbai, Ahmedabad and Lucknow.
These walkable districts will integrate hospitality, retail, entertainment and commercial hubs.
Premji Invest, one of the new backers, said India’s aviation sector was entering a period of structural growth.
The “sector is at a pivotal inflection point underpinned by robust structural tailwinds”, said T K Kurien, CEO and managing partner.
Adani Airport plans to demerge from Adani Enterprises in 2028, Jeet Adani said in December, in a move expected to unlock value and position the business as a stand-alone infrastructure platform. BLOOMBERG
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