Gautam Adani, the richest man in Asia, intends to offer stakes in 5 companies of the Adani Group to go public between 2026 and 2028.
According to Bloomberg, Jogishinder Singh, Chief Financial Officer of Adani Group, confirmed the readiness of at least 5 subsidiaries to enter the market in the next three to five years.
Singh said the companies Adani New Industries Ltd, Adani Airport Holdings Ltd, Adani Road Transport Ltd, AdaniConnex Pvt Ltd and the metals and mining units of the group will become independent units.
Singh explained that companies such as the airport operator are consumer platforms serving nearly 300 million customers and need to act on their own and manage capital requirements for further growth. He said companies will need to show they can pass basic tests of independent execution, operations and capital management before a formal separation can take place.
Billionaire Adani has faced criticism over the group's rapid expansion from a traditional port operator into a sprawling conglomerate with assets including media, cement and green energy that some say have increased debt and financial complexity for the group. CreditSights, a research firm, red flagged Adani Group's high leverage last year.
In turn, the group opposed the report, describing the leverage ratios as healthy.
Conglomerate leader Adani Enterprises is set to sell new shares at a discount and allow for payment in 3 installments when it floats an additional $2.5 billion stake later this month. A diversified shareholder base will help make weakly traded stocks more liquid and provide funds to pay down debt.
The Adani Group has consistently aligned itself with Prime Minister Narendra Modi's agenda. It has pledged more than $70 billion to help India shift from an importer of fossil fuels to a generator of renewable energy.
These spin-offs will generate massive cash flow and make the conglomerate an even more valuable platform globally to showcase India's infrastructure prowess, Singh said.
