Wednesday, June 09, 2021

Adani Group is reportedly planning to launch IPOs of its airport and food businesses

The Adani Group is now reportedly planning to list two more of its businesses on the Indian stock exchanges, after the market capitalisation of its six listed companies surged by over 5 times in the last year.

According to media reports, the airport and food businesses of the Adani Group could go public in the near future. The airports business is owned by Adani Enterprises as Adani Airports Holdings, while Adani Wilmar is a joint venture between the Adani Group and Singapore-based Wilmar International.

Currently, the Adani Group has six listed companies with a combined market capitalisation of over ₹8.5 lakh crore, skyrocketing from a little over ₹1.6 lakh crore last year.

If listed, these two companies could help Gautam Adani beat Mukesh Ambani as the richest Indian. According to Forbes’ real-time billionaires list, Ambani is the richest in India with $85 billion wealth, while Adani is second with $75.4 billion wealth.

A report by The Economic Times stated that the airports business will be hived off into a separate entity before the listing process is undertaken. The report further adds that before the initial public offering (IPO) is launched, the Adani Group will raise $500 million (approx. ₹3,600 crore) for the business on a private placement basis.

However, the ongoing Covid-19 crisis could temporarily play spoilsport.

“Discussions were held between top company officials and potential investment bankers. At least half a dozen global banks and a bunch of domestic bankers have met top officials recently. However, the group is awaiting better air passenger numbers as the Covid pandemic significantly reduced passenger traffic,” the report said, quoting an unnamed source, adding that the airport business listing is being targeted for the year-end.

09/06/21 Rounak Jain/Busiess Insider

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