Gulf capital backs Adani Airports’ USD 1 bn expansion raise

Another Gulf check is headed into Indian aviation. Adani Airport Holdings is raising INR 98.2 bn (c. USD 1 bn) in primary equity from a consortium including International Holding Company (IHC) subsidiary Alpha Wave Global, Premji Invest, Temasek, and BlackRock-managed funds, according to a press release.

BACKGROUND- Valuation was the holdup — for a while. The latest raise follows talks in May, when Alpha Wave Global and Temasek were weighing a potential USD 1.3 bn investment in Adani Airports, but were yet to agree on a valuation. Adani was reportedly seeking more than USD 20 bn.

Where’s the money going? The group plans to use the proceeds to modernize and expand its airport network, scale ground handling and other non-aeronautical businesses, and push annual passenger capacity toward 200 mn. It will also fund the first 22 mn sq ft of its Airport City developments — mixed-use districts around its airports aimed at generating more revenue beyond the core aviation business.

Why it matters: The raise could be the first piece of a much bigger financing push. The group’s portfolio spans eight airports, including Mumbai and Navi Mumbai, which together give the group exposure to roughly 23% of India’s passenger traffic. It is also pushing ahead with a major expansion program, with INR 400 bn (c. USD 4.8 bn) of planned capex through FY 2027, as strong traffic growth prospects continue to support investor appetite despite higher leverage and balance-sheet pressure.