Adani's airport unit plans $11 bn investment, seeks partner ahead of IPO

Adani Airport Holdings currently operates seven airports, including those in Mumbai and Ahmedabad, and is now targeting 11 more airports slated for privatisation, Jeet Adani said

By P R Sanjai, Mihir Mishra and Jeanette Rodrigues

 

Billionaire Gautam Adani’s group plans to invest more than $11 billion in its airports business by 2030, as it seeks to bid for nearly a dozen new terminals, upgrade infrastructure and expand into aircraft maintenance, a top executive said. 

The unit will spend ₹1 trillion ($11.1 billion) on terminals, runways and aircraft-handling facilities and passenger amenities, Jeet Adani, director at Adani Airport Holdings Ltd., said in an interview at the group’s new airport outside Mumbai.

 

He did not specify how the investments will be funded, but confirmed that the company is preparing for an initial public offering by the year ending March 2028, likely by spinning off the airports unit that’s currently under the flagship Adani Enterprises Ltd. 

“I personally believe a demerger is the better route as it unlocks greater value for Adani Enterprises shareholders,” he said, adding that the group is open to bringing in a strategic investor before the listing — although no formal talks have begun.

 

 

Adani Airport Holdings already operates seven airports, including at Mumbai and Ahmedabad. It is now targeting 11 airports slated for privatisation, Jeet Adani said. 

 

These may include terminals in Varanasi, Bhubaneswar and Amritsar, as the government bundles loss-making facilities with profitable ones to attract private capital.

 

The centerpiece of Adani’s expansion is Navi Mumbai International Airport, due to open on Dec. 25. The first phase, inaugurated by Prime Minister Narendra Modi, represents a 200 billion rupee investment and will handle 20 million passengers annually. A second phase is planned entailing an investment of ₹300 billion.

 

By 2030, the airport will feature a 50 billion rupee “Aero City” with 20 hotels and a monorail.

 

It will also debut an advanced baggage-tracing system that lets passengers follow their luggage in real time, and a culinary strategy ranging from a 40-rupee vada pav to a Michelin-star meal.

 

Jeet Adani said the IPO depends on three milestones: successful operations at Navi Mumbai, completion of surrounding commercial development, and financial self-sustainability. 

 

The unit is currently EBITDA positive, Jeet Adani said, referring to earnings before interest, taxes, depreciation and amortization, or operating profit. “We have yet to become cash-flow positive—a milestone we expect to reach within the next three years,” he said.

 

The ambitious plans come as the group cuts debt, restructures holdings, and seeks new investors to restore confidence following recent years of turbulence. Adani was hit hard by a Hindenburg Research report in 2023, which accused it of stock manipulation and accounting irregularities, erasing nearly $150 billion in market value before a partial recovery.

 

Last year, the US Department of Justice filed an indictment alleging bribery and other violations, adding fresh scrutiny on the group and its founders. The Adani Group has denied Hindenburg’s allegations as well as the DOJ charges.

 

Aviation Services 

Beyond airports, the group is expanding into aviation services. It plans to bid for state-owned AI Engineering Services Ltd. to capture heavy maintenance and engine overhaul work that now goes overseas. Aircraft engineering will be housed under Adani Defence, while ground handling will be grown organically.

 

“Right now, India only does very basic line maintenance,” Jeet Adani said. “The meatier part of the business like heavy maintenance and engine checks today flows out and that is something we want to focus on.” 

 

The group is also exploring aircraft manufacturing through partnerships with global players, according to Jeet Adani, who is the younger son of Gautam Adani.