Adani Airport Holdings Ltd. is in advanced talks with Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA) for selling a minority stake in Mumbai International Airport Ltd. which was acquired last month, two people known to the matter said.
Adani Airport is looking to raise capital of $750 million through stake sale, said one of the two people. The QIA prefers to directly invest in the Mumbai airport operator, but it may end up buying a stake in parent Adani Airport Holdings Ltd., said the person asked to be unknown.
Already, the Qatar fund is an investor in the power transmission business of Adani Enterprises Ltd., Adani Mumbai Electricity Ltd. which distributes power to about 3 million customers in Mumbai. QIA had invested Rs 3,220 crore (around $452 million), including equity of Rs 1,210 crore and a subordinate debt of Rs 2,010 crore for a 25.1 per cent stake in the utility provider in February 2020.
Last month, the Adani group had said that it would control the second-busiest airport of India, Mumbai and it is the biggest move for the group to become a top airport operator. The Group’s airport unit agreed to buy the debt of GVK Airport Developers Ltd., against a stake of 50.5 per cent MIAL as pledged. The Group has also obtained the approval of the Competition Commission of India and it will also buy the combined stake of 23.5 per cent in MAIL, which is held by the Airport Company of South Africa (Acsa) and South Africa’s Bidvest Group. After this, the Adani group would have a 74 per cent stake in the Mumbai airport and rest 26 per cent will remain to the Airports Authority of India.