Adani Airports IPO by 2027: Gautam Adani Group’s $100 Bn Expansion in Airports, Energy & Infrastructure?

Billionaire Gautam Adani's conglomerate is preparing to list its Adani Airports division by the year 2027. This move is part of a broader expansion strategy that envisions investing approximately $100 billion across various sectors and businesses within the group over the coming years. The ambitious investment plan aims to significantly boost the company's footprint and operations on multiple fronts.

According to a report by Bloomberg News on Wednesday, the Adani Airports unit will be spun off as a separate entity before its public listing. The expected timeline for this initial public offering (IPO) is by March 2027. This information comes from senior executives within the Adani Group who chose to remain anonymous while discussing the company's strategic plans.

Adani Airports Listing Plans by 2027

Adani Airports currently manages operations at eight airports throughout India, spanning key regions across the country. Among these is the Navi Mumbai International Airport, situated on the outskirts of India's financial capital, Mumbai. This new airport is a significant project for the company and is expected to become operational in the near future, enhancing connectivity and supporting the growing infrastructure needs of the region.

The company has also accelerated its capital expenditure timeline, deciding to invest $100 billion over the next five to six years rather than spreading the investments over a decade, as was initially planned. This shift reflects the group's increased focus on rapid expansion and growth across its various business segments, according to the report.

Additionally, the Adani Airports unit recently secured a $750 million funding commitment from a consortium of international banks. A portion of this capital infusion will be allocated to refinancing existing debt of $400 million.

Adani's Investment Strategy

The investments will focus on expanding energy, logistics, and infrastructure businesses. An Adani Group representative did not respond to requests for comments on these developments. The group's renewed focus on fundraising and growth follows setbacks from corporate fraud allegations by Hindenburg Research in 2023 and a bribery probe by the US Department of Justice (DoJ) against its founder.

Despite these challenges, the Adani Group has denied all allegations. Gautam Adani recently traveled to China to meet with industrial equipment manufacturers, marking his first major overseas trip since the DoJ indictment. Details of this trip remain undisclosed.

The group plans to borrow $30 billion from both domestic and international markets to support its investment plan. Internal accruals will cover the remaining costs, with about $50 billion expected from the group's listed companies. New assets like airports, roads, and renewable energy projects are projected to generate an additional $20 billion by 2030.

By then, the metals business is also expected to be listed. The Adani Group's interests span ports, green energy, cement, media, and more. It continues attracting overseas investors despite ongoing investigations into its founder.

In April, the group raised approximately $750 million for an acquisition with BlackRock Inc., subscribing to about a third of the bond issue. In May, its ports unit secured a $150 million bilateral loan from DBS Group Holdings Ltd., while Adani Airports obtained $750 million through external commercial borrowings from international banks this month.