Key Takeaways
- Adani Enterprises' airport unit to raise $1 billion from investors.
- The deal values the airport operator at $18 billion.
- Funds will be used to expand and modernize the company’s airport network.
Indian billionaire Gautam Adani's flagship firm Adani Enterprises has announced that its airport unit will raise approximately $1 billion from investors, including Temasek and BlackRock, in an expansion drive.
The funds will be utilized to expand and modernize the company’s airport network, develop airport-linked commercial infrastructure, and scale adjacent businesses such as ground handling and passenger services.
Adani Enterprises plans to sell a stake of up to 5.54% in the airport unit, with the capital infusion expected to lift the company’s 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 consecutive session of gains.
The investor group also comprises Alpha Wave Global and Premji Invest, bringing new capital to the business while Adani Enterprises remains the controlling shareholder.
Adani Airport Holdings will issue fresh shares to the consortium of investors, with the deal valuing the airport operator at $18 billion before the investment.
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 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.
Adani Energy plans another share sale by early next fiscal, sources say.
