Adani Group to invest Rs 1.3 trn in FY25; raise up to $3 bn in equity

Bulk of the investments will be in the airport and green energy businesses, says senior executive

The Adani group plans to invest up to Rs 1.3 trillion in 2024-25 (FY25) to expand its capacity across its portfolio companies and will raise up to $3 billion (Rs 25,000 crore) in equity this financial year to fund the projects.

Among its portfolio companies, Adani Green Energy will invest Rs 34,000 crore to expand its facilities in Gujarat’s Khavda, said Adani Group Chief Financial Officer Jugeshinder ‘Robbie’ Singh here on Tuesday.

The group, which plans to invest $100 billion in the next 10 years in the energy transition and infrastructure sectors, will launch the initial public offering (IPO) of its airport business by FY28, said Singh. The airport company is currently housed under Adani Enterprises, the flagship of the group.

The group also plans to refinance debt worth $3-4 billion in FY25. Another $1 billion will be raised via other debt instruments. 

Adani Enterprises and Adani Energy Solutions have already received shareholder clearances to sell shares to investors.

“Several of our assets will be commissioned this year, including the Navi Mumbai airport project,” Singh said. He said the group’s portfolio investment was now largely powered by funds from operations with limited third-party capital requirements. 

“Most of the investments will be made in the airport and green energy sectors,” he said. The group companies earned Rs 82,000 crore of cash flows in FY24, and its own cash flow will play an important role in funding future projects.

The entire funding plan for the next decade has been secured, with 68 per cent of the funding coming from internal cash flow, Singh said. “Every target mentioned by the chairman (Gautam Adani) about investment is on track and every penny of investment is tied up,” Singh said.

Adani Enterprises shares closed flat at Rs 3,171 a share on Tuesday, with a total market valuation of Rs 3.61 trillion.

Singh said almost 90 per cent of Adani group businesses come under various regulatory bodies like the Maritime Board and the Central Electricity Regulatory Commission, apart from external auditors, thus making its operations more transparent and robust. The group is earning $7 billion of free cash flow every year, Singh said.

The renewable energy unit will continue to invest in a solar manufacturing complex to create 10 gigawatts a year capacity in the next three years, and it expects its polysilicon foundry to be ready by 2028. The group is seeking long-term investors for its infrastructure assets, Singh said.