Adani Group is planning a public listing of five group companies over the next three to five years. The move will help improve debt ratios and expand the company's investor base.
The group led by Asian’s richest man Gautam Adani also plans to spin off or demerge its metals, mining, data center, airports, roads, and logistics businesses in the coming years.
The company’s chief financial officer, Jugeshinder Singh, stated that the goal is for these businesses to have a solid investment profile and experienced management by 2025-2028, when the Group plans to demerge them.
The Adani Group has high expectations for its airport business and aims for it to become a major player in the industry in the coming years.
Singh told Bloomberg in an interview that at least five units will be ready to go the market in the next three to five years.
He stated that Adani New Industries Ltd, Adani Airport Holdings Ltd, Adani Road Transport Ltd, AdaniConneX Pvt Ltd, and the group’s metals and mining units would become independent entities.
The Adani Group has already spun off its power, coal, transmission, and green energy businesses in recent years.
Adani has been expanding his empire from ports to energy and now owns a media company. Flagship Adani Enterprises Ltd is planning to raise up to $2.5 billion in a follow-on share sale, following a surge in the share price in recent years. Its stock increased by nearly 130% in 2022, but has dropped about 7% so far this year. Other Adani group companies also rose over 100% last year, causing some investors to worry about the companies being overvalued. However, Singh said that some traditional valuation metrics are not relevant for these businesses.