Adani Group Targets $1 Billion Investment For Airports From Middle Eastern Sovereign Fund

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 sources with knowledge of the matter.

This funding push comes as the group’s flagship entity, Adani Enterprises, launched a qualified institutional placement (QIP) on Wednesday (9 October) to raise Rs 4,200 crore ($500 million). The target was revised downward amid global market volatility, sources said.

The QIP also includes a green shoe option for an additional $500 million, with a final decision on this option expected by Thursday (10 October) .

Adani Airport Holdings, the conglomerate’s airports arm, is seeking fresh capital through two tranches, with the first expected to close by the end of this quarter. The sovereign fund involved in the negotiations remains unnamed.

The group’s original plan to raise up to $2 billion through the QIP has been scaled back, partly to allow for flexibility in securing additional funds next year, one source said. The QIP has already attracted soft commitments exceeding $650 million, with the company offering a discount of up to 5 per cent on the issue's floor price.

The floor price for the QIP is set at Rs 2,962 per share, representing a 6 per cent discount compared to Adani Enterprises' Wednesday closing price of Rs 3,152.90 on the Bombay Stock Exchange (BSE). A total of 14.2 million shares will be issued as part of the fundraising effort. The QIP is being managed by Jefferies, ICICI Securities, and SBI Capital Markets, reports The Economic Times.

Adani Enterprises, which oversees the group’s airport, road, and data centre operations, has earmarked Rs 80,000 crore for capital expenditure in the current fiscal year.

Of this, Rs 50,000 crore has been allocated specifically to the airports business and Adani New Industries. Adani Airports, which manages seven operational airports and is building another in Navi Mumbai, has committed to a long-term investment of $21 billion over the next decade.

Since entering the airports sector in 2019, the Ahmedabad-based conglomerate has emerged as India’s largest private operator of airports, a position it aims to solidify with its continued expansion efforts.