Adani Airports to raise $1 bn from Alpha Wave, Temasek, BlackRock funds, Premji Invest

Adani Airport Holdings will raise about $1 billion from global and domestic investors including Alpha Wave Global, Temasek, Premji Invest and BlackRock funds, valuing the airport operator at $18 billion. The funds will support infrastructure expansion, airport-city development and passenger services

New Delhi: Adani Airport Holdings Ltd (AAHL) will raise about USD 1 billion in primary equity from a consortium of global and domestic investors, including Alpha Wave Global, Temasek, Premji Invest and funds managed by BlackRock, valuing the airport operator at about USD 18 billion before the investment.

The Rs 9,825-crore fundraising is among the largest primary equity investments by financial institutions in India’s airport infrastructure sector and gives AAHL an external institutional valuation benchmark as the country’s aviation market enters a period of expansion in passenger traffic and airport capacity.

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The investors have signed binding agreements with AAHL to subscribe to new equity shares in three tranches, with the final tranche expected to be completed by July 2027, the Adani group firm said in a statement. Upon completion of all three tranches, the consortium will collectively hold about 5.54 per cent in AAHL.

The proceeds will be used to expand and modernise AAHL’s airport infrastructure, develop integrated airport-city ecosystems and scale its passenger-facing and non-aeronautical businesses, including ground handling, it said.

AAHL plans to develop about 22 million square feet of mixed-use projects in the first phase of its airport-city development programme. The investments are expected to help increase the platform’s capacity to serve about 200 million passengers annually, while expanding commercial revenues and passenger services.

“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.

“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. With the backing of these partners, we will continue to invest ahead of that growth, scaling our infrastructure, city-side developments and non-aeronautical businesses to build one of the world’s leading integrated airport platforms.”

“We will continue to build capabilities within AAHL to scale it into the world’s largest airports platform,” said Arun Bansal, CEO, AAHL.

“This ambition is buoyed by the exponential growth opportunities across India, the rising spending power of the Indian consumer, and the momentum of our city-side developments as powerful economic catalysts in the country’s major urban centres. We are deeply grateful to our partners for their confidence and look forward to continuing on this path together as we build a truly world-class airport platform for India.”

The transaction comes shortly after Adani Enterprises Ltd’s Rs 15,000-crore qualified institutional placement in July, which the company said was the largest QIP by a non-financial corporate in India. The two transactions underscore the Adani group company’s continued access to domestic and international institutional capital.

AAHL, a subsidiary of Adani Enterprises, operates eight airports in India and handles more than 23 per cent of the country’s total passenger traffic, according to the company. Its business spans airport operations, passenger-facing commercial activities and city-side development.

The transaction remains subject to customary conditions precedent, including applicable regulatory approvals.

Cyril Amarchand Mangaldas, AZB & Partners, JSA Advocates and Solicitors, TT&A Advocates and Solicitors, Jefferies India, SBI Capital Markets and Ernst & Young were among the advisers to the transaction.