India’s Adani Group plans to raise about $1 billion through its airport business by selling a minority stake to a group of investors.
The investors include Singapore-based Temasek and US investment firm BlackRock.
The deal will involve the sale of a 5.54% stake in Adani Airport Holdings (AAHL), one of India’s largest private airport operators.
Investors to buy 5.54% stake
According to a statement from Adani Group, the transaction will give AAHL a pre-money valuation of about $18 billion.
The company said the deal ranks among the largest primary investments by financial institutions in India’s airport infrastructure sector.
Investors will purchase new AAHL shares in three stages.
The company expects to complete the final stage by July 2027.
Adani to expand airport operations
Meanwhile, Adani Airport plans to use the funds to expand and modernise its airport infrastructure.
The company also plans to grow other operations, including ground-handling services.
Adani Airport CEO Arun Bansal said the company wants to build AAHL into the world’s largest airport platform.
He said India’s growing economy and rising consumer spending will create more opportunities for the business.
Bansal also pointed to the growth of developments around airports in major Indian cities.
India’s aviation sector faces pressure
The investment comes as India’s aviation industry continues to attract attention.
The country’s two largest airlines, Air India and IndiGo, have recently faced regulatory and safety challenges.
At the same time, passenger numbers in India are expected to grow sharply.
Indian airlines could carry an additional 425 million passengers by 2044. That would be more than double the number recorded last year.
However, experts warn that rapid growth could put more pressure on the country’s aviation infrastructure.
Adani seeks to rebuild investor confidence
The investment also comes about a month after Adani Group founder Gautam Adani resolved allegations linked to a US bribery case.
The latest investment could signal renewed confidence from major global investors in the conglomerate.
For Adani Airport, the funding will provide more capital to expand its airport network and related businesses as India’s aviation market continues to grow.
