(Bloomberg) – Asia’s richest man, Gautam Adani, plans to sell stakes in at least five companies to the public between 2026 and 2028 to help the port-to-power conglomerate improve debt ratios and expand its investor base .
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“At least five units will be ready for the market in the next three to five years,” Jugeshinder Singh, Adani Group’s chief financial officer, said in an interview. He said that Adani New Industries Ltd., Adani Airport Holdings Ltd., Adani Road Transport Ltd., AdaniConnex Pvt Ltd. and the Group’s metals and mining entities would become independent entities.
Singh said companies like the airport operator are consumer platforms that serve nearly 300 million customers and need to operate independently and manage their capital needs to continue growing. He said the companies must demonstrate they can pass the basic tests of independent execution, operations and capital management before a formal demerger can be implemented.
“Scale is already there for the five units,” Singh said. The “airport business is already independent, while Adani New Industries is strong on the green energy side. Adani Road is demonstrating new build-operate-transfer models to the nation as the data center business continues to grow. Metals and mining would cover our aluminum, copper and mining services.”
Billionaire Adani has been criticized for the group’s rapid expansion from a traditional port operator into a sprawling conglomerate with assets including media, cement and green energy, which some say has increased debt and financial complexities. Research firm CreditSights put a red flag on the Adani Group’s “increased” debt over the past year. The group contested the report, calling the leverage ratios “healthy.”
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The conglomerate’s flagship company, Adani Enterprises, is set to sell new shares at a discount and allow payments in three installments when it makes a follow-up offer of $2.5 billion later this month — an unusual move for one of the biggest stocks of the country designed to attract domestic mom and pop investors. A diversified shareholder base would help liquidate the underperforming stocks and provide funds to pay down debt.
The Adani Group has consistently aligned itself to support Prime Minister Narendra Modi’s agenda. It has pledged more than $70 billion to help India transform from a fossil fuel importer to a renewable energy producer.
“These splits will result in massive cash flows, making the conglomerate a more valuable platform that showcases India’s infrastructure prowess globally,” Singh said.
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