Adani Group in Talks for $1 Billion Investment from Middle Eastern Fund for Airport Expansion

The Adani Group is currently in advanced discussions with a Middle Eastern sovereign fund to secure up to $1 billion for its airport operations, according to sources familiar with the matter.

This fundraising effort comes as Adani Enterprises, the group’s flagship company, initiated a qualified institutional placement (QIP) on Wednesday, aiming to raise up to ₹4,200 crore (about $500 million). This is less than their original target due to global market volatility. The QIP includes a base amount of $500 million and a greenshoe option for an additional $500 million. A decision on this option will be made on Thursday.

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The Ahmedabad-based conglomerate plans to raise fresh capital through Adani Airport Holdings in two stages, with the first expected by the end of this quarter. The identity of the sovereign fund involved has not been disclosed.

As a result of these developments, the group has reduced its initial QIP target from $2 billion. They also want the option to raise some funds next year for their airport business, which is fully owned by Adani Enterprises. The QIP has already received soft orders exceeding $650 million, and the company announced it would offer a discount of no more than 5% on the issue price.

The indicative floor price for the QIP is set at ₹2,962 per share, which is about 6% lower than the stock’s closing price of ₹3,152.90 on Wednesday. The company plans to issue a total of 14.2 million shares, with Jefferies, ICICI Securities, and SBI Capital acting as bankers for the issue.

A spokesperson for the Adani Group did not respond to inquiries from ET. Adani Enterprises, which manages the group’s airport, road, and data center businesses, has a capital expenditure plan of ₹80,000 crore for this fiscal year, with ₹50,000 crore earmarked for the airport sector and Adani New Industries.

Adani Airports, which operates seven airports and has one under construction in Navi Mumbai, intends to invest $21 billion over the next ten years, as stated by group CFO Jugeshinder Singh earlier this year. Since entering the airport business in 2019, the group has become the largest private airport operator in India.