Adani Airports Eyes $1 Billion Boost: In Talks with Middle Eastern Sovereign Fund for Major Investment

Mumbai: The Adani Group is reportedly in advanced discussions with a Middle Eastern sovereign fund to raise up to $1 billion for its airports business, according to sources familiar with the matter.

This comes as Adani Enterprises, the group’s main company, launched a qualified institutional placement (QIP) on Wednesday to raise up to ₹4,200 crore ($500 million). The amount is lower than originally planned due to the global market’s volatility, sources said. The QIP also includes an option to raise an additional $500 million, but a final decision on this will be made on Thursday.

ADVERTISEMENT

Be part of our community by downloading and registering on the Angel One app. Your support helps us keep delivering quality content.

Adani is planning to secure the new capital for its airports division, Adani Airport Holdings, in two parts. The first part is expected to be finalised by the end of this quarter with the help of the sovereign fund, though the name of the fund has not been disclosed.

As a result of these talks, the group reduced its initial plan to raise up to $2 billion through the QIP. One source mentioned that Adani wants the flexibility to raise a portion of the funds next year for the airports business, which is fully owned by Adani Enterprises.

So far, the QIP has received interest of over $650 million. On Wednesday, the company stated that it would offer a discount of up to 5% on the floor price for the issue. The floor price is set at ₹2,962 per share, according to the term sheet. This reflects a 6% discount on the stock’s closing price of ₹3,152.90 on the BSE that day. A total of 14.2 million shares will be issued. Jefferies, ICICI Securities, and SBI Capital are managing the issue.

The Adani Group did not respond to email queries regarding the matter.

Adani Enterprises, which manages businesses like airports, roads, and data centres, has planned a capital expenditure of ₹80,000 crore for this fiscal year. Out of this, ₹50,000 crore is earmarked for the airports business and Adani New Industries. Adani Airports, which operates seven airports and is building another in Navi Mumbai, has planned to invest $21 billion over the next decade, according to Jugeshinder Singh, the group’s chief financial officer.

Since entering the airports sector in 2019, Adani has become the largest private airport operator in India.