Adani Airports to raise $1 bn at $18 bn valuation; Adani Enterprises shares gain 1%

Adani Airport Holdings Ltd (AAHL), the airports arm of Adani Enterprises, has proposed to raise ₹9,825 crore (around $1 billion) in primary equity from a consortium of marquee global and domestic investors, valuing the company at around $18 billion on a pre-money basis.

Cheering the news, shares of Adani Enterprises rose as much as 1.2% to ₹2,996 on the BSE in early trade on Wednesday, taking its market capitalisation to ₹4.04 lakh crore. The Adani Group flagship had opened at ₹2,963.35 against its previous close of ₹2,959.80.

“Adani Airport Holdings Limited (AAHL) … has entered into binding agreements to raise ₹9,825 crore ($1 billion) of primary equity capital,” AEL said in an exchange filing today.

The investment will come from a consortium of investors comprising Alpha Wave Global, Premji Invest, Temasek and BlackRock-managed funds.

“The transaction values AAHL at a pre-money equity valuation of ~USD 18 billion and represents one of the largest primary equity investments from financial institutions in India’s airport infrastructure sector,” the release noted.

Global investors to own 5.54% stake

The investors - Alpha Wave Global, Premji Invest, Temasek and BlackRock-managed funds - will subscribe to fresh equity shares in three tranches, with the final tranche expected to be completed by July 2027. Once all three tranches are completed, they will collectively hold around 5.54% in AAHL.

The funds will be used to expand and modernise AAHL’s airport infrastructure, develop Adani Airport City projects and scale its passenger-facing and non-aeronautical businesses, as per the release. The company plans around 22 million sq. ft. of mixed-use development in the first phase and aims to expand capacity to serve around 200 million passengers annually.

The transaction follows Adani Enterprises’ ₹15,000 crore qualified institutional placement in July, the largest QIP by a non-financial corporate in India.

AAHL operates eight airports across India and serves more than 23% of the country’s total passenger traffic.

Adani Airports eyes global leadership

The fresh capital will help AAHL accelerate its expansion plans as it seeks to build a globally leading airport platform, according to the company’s top executives.

“This partnership marks an important milestone in building out the Adani Airports platform, and we are privileged to have such marquee, long-term investors alongside us on this journey,” said Jeet Adani, Non-Executive Director, AAHL.

He said India’s aviation sector is one of the most powerful multipliers of the country’s GDP growth. “Every expansion in air connectivity catalyses trade, tourism, employment and regional development well beyond the airport gate.”

He added that the company would continue to invest ahead of growth by scaling airport infrastructure, city-side developments and non-aeronautical businesses.

“We will continue to build capabilities within AAHL to scale it into the world's largest airports platform,” said Arun Bansal, CEO, AAHL. He said the ambition was supported by growth opportunities across India, rising consumer spending and the momentum of city-side developments.