Why Global Investors Are Betting Big on Adani and India’s Airports

India’s booming aviation sector is drawing strong global investor interest, and the Adani Group’s airport business has emerged as one of the biggest attractions.

According to The Economic Times, a consortium of international investors, including Singapore’s Temasek and Alpha Wave Global, is in talks to invest nearly $1.3 billion in Adani Airport Holdings Ltd (AAHL).

The proposed investment could value the company at around $18 billion (about Rs 1.51 lakh crore), though sources told ET that Adani Group management is seeking a significantly higher valuation of over $20 billion. Some investors have also reportedly sought structured deals with assured returns, a proposal the group is said to have rejected.

If completed, this would become the first external equity fundraising for AAHL. ET reported that four investors are expected to join the consortium, although the identities of the remaining two could not be independently verified.

Big Bet on Air Travel

The interest reflects growing confidence in India’s aviation market, where passenger traffic continues to rise rapidly.

Adani Group entered the airport business in 2019 and today operates eight airports across India — Ahmedabad, Lucknow, Mangaluru, Mumbai, Jaipur, Guwahati, Thiruvananthapuram and the recently operationalised Navi Mumbai airport. Together, these airports handle nearly 23% of India’s total passenger traffic.

The company is now accelerating Phase 2 development at Navi Mumbai airport amid expectations that the current capacity could be filled within the next 12 to 18 months.

Adani Group CFO Jugeshinder Singh had told ET in June last year that AAHL may raise around $1 billion from international investors as it evaluates growth plans and potential acquisitions.

Expansion Push Continues

The group is also investing heavily to expand airport infrastructure.

Speaking during an earnings call last month, Singh said the company has drawn up a Rs 40,000 crore capital expenditure plan for FY27, with airports accounting for nearly Rs 17,000 crore. A large part of the spending will go towards city-side development projects at Mumbai, Navi Mumbai, Ahmedabad, Lucknow and Jaipur airports.

The company is also building a new terminal in Ahmedabad ahead of the 2030 Commonwealth Games.

AAHL’s financials have strengthened alongside its expansion. Revenue from operations rose 34.4% in FY26, while profit after tax more than doubled to Rs 1,731 crore.

Legal Cloud Still Remains

The investment discussions are also being closely watched because they come amid legal scrutiny in the US involving Adani Group chairman Gautam Adani and his nephew Sagar Adani.

According to ET, the deal is expected to move forward after the US Department of Justice rules on allegations of bribery and fraud against the two executives. Bloomberg reported on Thursday that US authorities are preparing to drop the charges.

Last month, the eastern district court of New York approved a pre-motion conference sought by Gautam Adani and Sagar Adani, allowing them to argue for an early dismissal of the case — a move seen as an important legal opening for the group.

Big Investors Show Confidence

Alpha Wave Global is linked to billionaire Sheikh Tahnoon bin Zayed Al Nahyan’s International Holding Co (IHC), which remains a major shareholder in Adani Enterprises. Sheikh Tahnoon had invested $2 billion in Adani companies in 2023 following the Hindenburg crisis that triggered a sharp fall in group stocks.

Temasek, meanwhile, has a large infrastructure portfolio globally, including investments in CapitaLand, Keppel and Sembcorp — underlining the growing international appetite for India’s airport growth story.

Global Money Backs GMR Airports Too

Adani Group is not the only player attracting strong investor interest in India’s aviation sector. In 2024, its rival GMR Airports Infrastructure secured funding commitments of around ₹6,300 crore through GMR Infra Enterprises from the Abu Dhabi Investment Authority (ADIA), underscoring continued global confidence in India’s airport growth story.

The investment was seen as a key boost for promoter-level liquidity, helping ease pressure and allowing partial release of pledged shares in the listed entity, GMR Airports, according to company disclosures at the time.

GMR Enterprises Private Limited holds a 13.78% direct stake in GMR Airports, while its affiliate GMR Infra Enterprises Private Limited owns another 11.65%, taking total promoter holding to about 25.43%.

Separately, in 2019, GMR Infrastructure said a consortium of Tata Group, Singapore’s GIC affiliate and Hong Kong-based SSG Capital Management would invest about ₹8,000 crore ($1.16 billion) in its airports unit.