Adani airport unit to raise $1bn in stake sale

Indian conglomerate Adani Group said Wednesday that its airport unit will raise about $1 billion by selling a 5.54 percent stake to investors including Singapore's Temasek and BlackRock.

Adani said the transaction gives Adani Airport Holdings a pre-money equity valuation of around $18 billion. Investors will subscribe to new equity shares in three tranches, with the final tranche expected to be completed by July 2027.

The company said the money will be used to expand and modernise airport infrastructure and scale other businesses including ground-handling.

Adani Airport chief executive Arun Bansal said the company would continue building its capabilities as it seeks to become the world's largest airports platform.

The fundraising comes as India's aviation sector is under scrutiny after Air India and IndiGo faced regulatory and safety challenges. It also comes a month after Adani Group founder Gautam Adani resolved US bribery allegations.