Adani Plans To Separate Airport Business From Group Entity With Four Billion Dollar IPO

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The Adani Group plans to separate its airport business from holding entity Adani Enterprises Ltd (AEL).

Adani group, which controls Mumbai airport and six regional facilities, is targeting a valuation of Rs 25,500 to 29,200 crore ($3.5 to 4 billion) for the business through an initial public offering.

“Discussions were held between top company officials and potential investment bankers. At least half a dozen global banks and a bunch of domestic bankers have met top officials recently. However, the Group is awaiting better air passenger numbers as the Covid pandemic significantly reduced passenger traffic. They would like a year-end listing,” sources told The Economic Times.

Through the Airports Authority of India’s tendering process, Adani Airports won the mandate to modernise and operate six airports Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram.

In August 2020, Adani acquired a 74 per cent stake in Mumbai International Airport (MIAL), which runs Chhatrapati Shivaji Maharaj International Airport. This move also gave Adani ownership of the upcoming Navi Mumbai Airport, in which MIAL holds 74 per cent.

Recently Gautam Adani, the founder and chairman of the Ahmedabad-headquartered Adani Group has become the second-richest Asian.

Adani’s net worth has surged by a whopping $32 billion in 2021 so far, marking the third-highest surge in wealth by any person on the planet this year, after Bernard Arnault and Miriam Adelson. Most of his wealth is locked up in his Group’s holdings in several publicly listed Group companies like Adani Enterprises, Adani Green, Adani Total Gas, Adani Power, Adani transmission, et cetera.

The shares of the Group’s companies have witnessed as much as 200 to 1,100 per cent surge in share prices over the last 12 months, sending Adani’s net worth rocketing to the sky.