Adani set to spin off more group companies in the next few years
- IBJ Bureau
- Jan 23, 2023
The Adani Group, controlled by billionaire Gautam Adani, plans to spin off more businesses by 2028. Speaking to the Reuters, the group’s chief financial officer (CFO) has dismissed any debt concerns.
The corporate house planned to spin off, or demerge, its metal, mining, data centre, airport, road and logistics businesses, said Jugeshinder Singh, the CFO of the Adani Group.
“The criteria is (sic) for these businesses to achieve a basic investment profile and experienced management by 2025-28, which is when we plan to demerge them,” said Mr Singh.
The company was betting big on its airport business and was aiming for it to become the largest services base in the country in the coming years, outside of government services, Mr Singh said.
The Adani Group has spun off its power, coal, transmission and green energy businesses in the last five to seven years.
Mr Adani, the world’s third-richest man according to the Forbes, has been diversifying his empire from port to energy and now owns a media company.
His flagship firm Adani Enterprises is set to raise up to $2.5 billion in a follow-on share sale, the Reuters had previously reported.
“We don’t go to market if we are not sure of raising the full amount ($2.5 billion),” Mr Singh said, adding that the company wanted to increase the participation of retail investors and therefore was going for a primary issue instead of a rights issue.