$1 bn fundraise puts Adani Airports among world's top three by valuation

Billionaire Gautam Adani's airport business is set to rank among the world's most valuable airport operators after raising about USD 1 billion in fresh equity from global and domestic investors, including Temasek, BlackRock-managed funds, Alpha Wave Global and Premji Invest.

The transaction values Adani Airports Holdings at about USD 18 billion before the investment. Following the fundraise, its implied post-money equity value will be around USD 19 billion, placing the Indian airport operator at about third globally among major listed and recently valued airport operators, behind Spain's Aena and Airports of Thailand, according to market research analysts.

The comparison, however, is not strictly like-for-like as Aena and Airports of Thailand are publicly listed companies, while Adani Airport Holdings is privately held within Adani Enterprises.

Under the agreements, the investor consortium will subscribe to newly issued shares in Adani Airport Holdings in three tranches and collectively hold about 5.54 per cent once the transaction is completed. The final tranche is expected to be completed by July 2027, according to a company statement.

The fresh capital will be deployed to expand and modernise Adani's airport network, develop airport-linked commercial infrastructure and scale businesses including ground handling and passenger services.

The company is targeting annual airport capacity of about 200 million passengers.

Adani Airports currently operates eight airports, including Mumbai International Airport, handling roughly a quarter of India's passenger traffic and about a third of its air-cargo volumes.

The expansion has made it India's largest airport operator by the number of airports, although GMR remains ahead in terms of passenger volumes handled.

The new valuation places Adani Airports above several major listed global operators. Aena, Spain's airport operator, has a market capitalisation of about USD 46 billion, while Airports of Thailand is valued at around USD 27 billion, analysts said.

Groupe ADP, which operates Paris-Charles de Gaulle and Paris-Orly airports, has a market value of roughly USD 13 billion. Public-market valuations, however, fluctuate with share prices.

GMR Airports is valued at about USD 10.9 billion, while Shanghai Airport is worth around USD 8.8 billion.

The fundraise also highlights growing investor interest in India's airport infrastructure as passenger demand expands.

Adani Airports plans to develop about 22 million square feet of mixed-use projects in the first phase of its airport-city developments, adding commercial and real estate revenues to its aviation business.

The latest fundraise follows a Rs 15,000 crore qualified institutional placement by Adani Enterprises in July and comes as the group steps up investments across infrastructure and other businesses.

Adani Enterprises will retain control of its airport subsidiary after the transaction.