Adani group seeks $1 bn funding from sovereign fund for airport expansion
The Adani Group is in advanced discussions with a Middle Eastern sovereign fund to raise up to $1 billion for its airports division, according to a report by The Economic Times.
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Along with the base size of $500 million, the QIP includes a greenshoe option for an additional $500 million, with a decision on this expected by Thursday. The conglomerate, based in Ahmedabad, plans to raise capital for Adani Airport Holdings in two phases, with the first round likely to be secured from the sovereign fund by the end of this quarter, though the fund’s name has not been disclosed, the report further said.
In light of these developments, the group has scaled back its initial QIP target from $2 billion.
The term sheet specifies the indicative floor price for the QIP at Rs 2,962 per share, representing a 6 per cent discount from the stock’s closing price of Rs 3,152.90 per share on Wednesday at the BSE. A total of 14.2 million shares will be issued, with Jefferies, ICICI Securities, and SBI Capital serving as the transaction’s bankers.
Adani Enterprises, which oversees the group’s operations in airports, roads, and data centers, has outlined a capital expenditure of Rs 80,000 crore for this financial year. Of this, Rs 50,000 crore is earmarked for the airports business and Adani New Industries. Adani Airports, which operates seven airports and is constructing another in Navi Mumbai, has planned an investment of $21 billion over the next decade, according to group CFO Jugeshinder Singh, as mentioned by the report.
Since entering the airports sector in 2019, Adani has become the largest private airport operator in India, the report said.
First Published: Oct 10 2024 | 1:03 PM IST
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