Asia's Richest Man Plans to IPOs for Five Companies or More

Gautam Adani, Asia's Richest Man, Plans To Sell Shares To the Public In At Least Five Companies Between 2026 And 2028. This Will Help the Conglomerate Improve Its Debt Ratios And Broaden Its Investor Base.

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Jugeshinder Singh, Adani Group chief financial officer, said in an interview that at least five units would be ready to go to the market in the next three to five years. 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 units would become independent units.

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According to Singh, businesses such as the airport operator are consumer platforms servicing nearly 300 million customers and need to operate on their own and manage their capital requirements for further growth. He said the businesses would need to show they can clear the basic tests of independent execution, operations and capital management before a formal demerger can be implemented.

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According to Singh, the scale is already there for the five units. The airport business is already independent, while Adani New Industries is doing well in the green energy sector. Adani Road is demonstrating new build-operate-transfer models to the nation, and the data center business is expected to grow even more. Metals and mining will cover aluminum, copper and mining services.

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Billionaire Adani has come under fire for the group's rapid expansion from a traditional port operator to a sprawling conglomerate with assets including media, cement and green energy. Some say this has increased debt and financial complexity. Research firm CreditSights red-flagged the Adani Group's "elevated" leverage last year. The group disputed the report, calling leverage ratios "healthy."

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Adani Enterprises, the flagship company of the conglomerate, is scheduled to sell new shares at a discount and allow payments in three installments when it rolls out a $2.5 billion follow-on offer later this month. This is an unusual move for one of the country’s major stocks, designed to attract domestic mom-and-pop investors. A diversified shareholder base would help make the thinly traded stock more liquid and provide funds to pay down debt.

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The Adani Group has been a strong supporter of Prime Minister Narendra Modi's agenda, pledging over $70 billion to help India transition from a fossil fuel importer to a renewable energy producer. Adani's commitment to clean energy is helping to power India's growth and development, and the company is playing a key role in making the country a global leader in renewables.

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"These demergers will result in a significant increase in cash flow and make the conglomerate a more valuable platform globally, showcasing India's expertise in infrastructure," Singh said.