Adani airport business to raise $1 bln through stake sale

MUMBAI

Indian conglomerate Adani Group said on Sept. 9 that its airport unit would raise about $1 billion selling a minority stake to a group of investors including Singapore’s Temasek and U.S. firm BlackRock.

The transaction will see investors buy a 5.54 percent stake in Adani Airport Holdings (AAHL), one of India’s largest private airport operators, giving it a “pre-money equity valuation” around $18 billion, a statement
said.

The deal “represents one of the largest primary equity investments from financial institutions in India’s airport infrastructure sector,” it added.

The money raised will be used to expand and modernize airport infrastructure, while scaling other businesses like ground handling.

The fundraise comes as India’s aviation sector is in the spotlight, with the top two carriers Air India and IndiGo having faced several regulatory and safety challenges.

Indian airlines are expected to carry an additional 425 million passengers by 2044, more than double last year’s figure, but experts fear the growth has strained the system’s ability to cater to the boom.

The investment also comes a month after billionaire founder Gautam Adani resolved the U.S. bribery allegation, a sign that his conglomerate is winning back the faith of global investors after years of regulatory overhang.