Adani Group Initiates Talks to Launch IPO of Airport Business - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Jun 10, 2021 - Adani Group Initiates Talks to Launch IPO of Airport Business

Adani Group Initiates Talks to Launch IPO of Airport Business

Jun 10, 2021

Gautam Adani's ports-to-energy conglomerate Adani Group has reportedly started initial discussions to hive off its airport business from holding entity Adani Enterprises (AEL) in a bid to list it separately.

With investments in infrastructure, transportation, utilities, and energy, the Ahmedabad-based conglomerate is likely to raise US$500 m via a private placement of shares in Adani Airports Holdings before a final initial public offering (IPO).

The group took control of India's second-busiest airport of Mumbai as well six regional facilities, and is eyeing a valuation of Rs 255-292 bn for the business.

In 2019, the group entered the airport sector.

Citing a person with direct knowledge of the matter, The Economic Times reported talks were held between top company executives and potential investment bankers.

Recently, six global banks and several domestic bankers have met top officials.

--- Advertisement ---
The Only 20 Stocks to Own Forever?

After studying the Indian stock markets for 20 years now...

Our Co-head of Research Tanushree Banerjee has zeroed in on the ultimate list of Forever Stocks that have the potential to permanently lift you into the premier orbit of extreme wealth.

On June 21 at 5pm, Tanushree will be revealing the full details on the complete list of these stocks for Indian investors.

You Register your FREE spot for her Forever Stocks event with this link.

As per the source, the group is awaiting better air passenger numbers as the Covid pandemic significantly reduced passenger traffic. They would like a year-end listing.

Earlier, Adani Airports won the mandate to modernise and operate six airports - Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

On top of that, Adani Airport Holdings (AAHL) acquired an additional 23% stake in Mumbai International Airport (MIAL) in February this year, which manages Chhatrapati Shivaji Maharaj International Airport.

This provided Adani ownership of the upcoming Navi Mumbai Airport, in which MIAL holds 74% stake.

Adani Airports has a debt of Rs 41 bn while that of Adani Enterprises amounts to Rs 153 bn.

According the chief financial officer (CFO) of the company, Robbie Singh said,

  • In the three-five-year plan, we would have a total capital expenditure (capex) in the airports of about Rs 300 bn estimated and the debt from that will be approximately Rs 200 bn to Rs 210 bn.

    They are cash-making businesses and they already operate. They have their own capacity to borrow, so from our point of view, our commitment is to the equity portion of the airports, of which a majority of what equity was required we've already invested.

Worth mentioning here is that after airports, the group has ventured into the business of developing railway stations, and the Indian Railway Stations Development Corporation (IRSDC) has shortlisted the Adani group and eight others to submit their proposals to redevelop the iconic Chhatrapati Shivaji Maharaj Terminus (CSMT) railway station in Mumbai.

--- Advertisement ---
These 3 Stocks are the Dark Horses of the Stock Market

The mainstream media mostly ignores them.

Mutual funds and hedge funds can't buy them in bulk.

Stock brokers rarely cover them.

These stocks are the dark horses of the stock market.

They only come in limelight after they have rallied by hundreds or even thousands of percent.

Our head of smallcap research, Richa Agarwal, has a knack for identifying such stocks before they begin their rally.

Over the years, she has spotted such stocks which have gone on to offer triple and even quadruple digit gains for investors. (* Past performance is no guarantee of future results)

Today, when the markets are near all-time high... and some investors are thinking of booking profits... Richa has spotted 3 such stocks which are set for a massive rally.

She will reveal the details of these 3 stocks on 28th June at her free online summit.

Click here to sign-up. It's free.

The group has an overall debt of over Rs 1.5 tn, following several acquisitions in the port, power and airport sectors.

In the past, the group had hived off many subsidiary businesses such as Adani Green Energy, Adani Power, and Adani Total Gas, and raised equity through strategic stake sales to both financial and strategic investors such as Qatar Investment Authority and Total of France to boost shareholder returns.

Adani Wilmar eyes US$ 1 bn IPO in 2021

Gautam Adani-led port-to-power conglomerate Adani Group is preparing to raise nearly US$1 bn in 2021 through an IPO by Adani Wilmar.

Adani Wilmar, which aims to be the largest food company in India by 2027, is trying to muscle its way in the fast-growing consumer segment and unlock value through the IPO.

If the plans fructify, it will be the seventh firm to be listed from the diversified group's stable.

According to a source, investment banks such as JP Morgan and Kotak Mahindra were selected earlier, but now Bank of America Securities and Credit Suisse are also on board.

Work has begun and depending on market conditions, the DRHP (draft red herring prospectus) may be filed with market regulator by late June or in July, as per the source.

Market capitalisation of Adani group stocks

The six Adani group companies have a combined market capitalisation of over Rs 9.5 tn. Adani Green Energy tops the list and commands a market cap of Rs 1.89 tn.

The combined m-cap of the six listed Adani Group entities had recently eclipsed the US$ 100 bn mark.

Adani Enterprises surpassed Adani Ports to become the second most valuable Adani group company.

BREAKING: It's Good Time to Invest in Gold, but Just Don't Go Blindfolded

Adani Enterprises current market cap is at Rs 1.75 tn.

The current marketcap of Adani Transmission and Adani Ports stands at Rs 1.74 tn and Rs 1.73 tn, respectively.

Market cap of Adani Power and Adani Total Gas stands at Rs 600 bn and Rs 1.78 tn, respectively.

The Adani group's market cap has nearly doubled since the start of the year.

The group was the biggest beneficiary of the post-pandemic rally on the bourses, seeing a jump of about 6.5 times in marketcap since March 2020.

Asia's second richest man

Industrialist Gautam Adani recently became Asia's second richest and the world's fourteenth richest businessman. He added US$32.7 bn to his net worth in 2021.

The spectacular rise in Adani's wealth has come on the back of the rise in the share prices of Adani companies.

Gautam Adani, who started as a commodity trader, today owns companies across ports, airports, energy, resources, logistics, agribusiness, real estate, financial services, gas distribution, and defence, among others.

Once a medium-sized group based out of Ahmedabad, Adani's companies now have the third-biggest market capitalisation among family-owned businesses in India after Tatas and Reliance Industries.

How the stock markets reacted to Adani Group stocks

Adani group stocks were trading on a mixed note today.

Here's the stock price details of the top stocks in the Adani Group.

ADANI PORTS & SEZ 848.7 -0.5%
ADANI POWER 154.4 1.4%
ADANI TOTAL GAS 1,600 0.2%
Source: Equitymaster

Within the Adani group, Adani Power (up 1.3%) and Adani Transmission (up 1.4%) were among the top gainers today.

On the other hand, Adani Green Energy (down 0.5%) and Adani Ports & Sez (down 0.5%) were among the top losers today.

About Adani Group

Adani Group, is an Indian multinational conglomerate company, headquartered in Ahmedabad, Gujarat, India.

It was founded by Gautam Adani in 1988 as a commodity trading business, with the flagship company Adani Enterprises (previously Adani Exports).

The group's diverse businesses include energy, resources, logistics, agribusiness, real estate, financial services, defence, and aerospace.

The group has annual revenue of over US$13 bn, with operations at 70 locations in 50 countries.

It's India's largest port developer and operator with ten ports and terminals including Mundra Port, its largest.

Through a joint venture with Wilmar International in Singapore, the group co-owns India's largest edible oil brand, Fortune Oil.

For more details about the Adani Group, you can have a look at some very insightful Equitymaster articles on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Equitymaster requests your view! Post a comment on "Adani Group Initiates Talks to Launch IPO of Airport Business". Click here!

1 Responses to "Adani Group Initiates Talks to Launch IPO of Airport Business"

Ranjan Dasgupta

Jun 12, 2021

Airport development and management is a specialised field. Though Adani is new entrant, but it is managing the Airports well that it has taken over. Its foray in managing MiAL has given international traffic demand too. it will be first entity exclusively to engage in airport management with huge potential.

Equitymaster requests your view! Post a comment on "Adani Group Initiates Talks to Launch IPO of Airport Business". Click here!

More Views on News

Top 5 Recent IPO Developments You Should Know (Views On News)

May 12, 2021

So far in 2021, IPOs in India have raised nearly US$ 3 bn, the best start to the year since 2018.

How Did Mindtree Perform in Q4FY21? (Company Info)

Apr 20, 2021

Here's the rundown on the company's latest quarterly results.

HDFC Banking and Financial Services Fund: Emphasizes on the Growing Sector (Outside View)

Jun 18, 2021

PersonalFN analyses the features of HDFC Banking and Financial Services Fund and explains the potential this fund has to offer to its investors.

Can You Make More than 100 Times Your Investment? (Profit Hunter)

Jun 18, 2021

The open secret to multiplying your money in forever stocks.

Why You Should Care About the Fed (Fast Profits Daily)

Jun 18, 2021

This is why the words of the US Fed matters to global markets.

More Views on News

Most Popular

All You Need to Know About Primary and Secondary Markets

A look at the various types of primary and secondary markets and the key differences between them.

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 18, 2021 (Close)