Adani Group: IPO of the group's airline and airport businesses - Jeet Adani clarified both the pictures

News Topical, Digital Desk : Adani Group Director Jeet Adani today clarified the question of whether the Adani Group will have its own airline in the future. Following the Indigo crisis, the government has advocated for more airlines in the country to provide better competition. He was asked this question in an exclusive interview with CNBC TV18. Jeet Adani discussed his stance on the aviation sector and future plans for Adani Airport.

What did Jeet Adani say about the aviation sector?

Jeet Adani clarified that the Adani Group has no intention of entering the airline business. He stated that the aviation sector neither aligns with the group's investment philosophy nor meets its return expectations. He stated that even if regulations related to the sector are simplified in the future, the group has no such intentions at this time. He stated that we are accustomed to investing in high-margin businesses and maximizing asset utilization. Airlines are the complete opposite. We will not take such steps either now or in the future. However, Jeet Adani also reiterated that the group continuously evaluates opportunities in every sector, but aviation does not currently meet its current investment criteria. 

Preferring a demerger over an IPO: Speaking about the future of Adani Airports, Jeet Adani stated that the group is more inclined towards a demerger than an IPO, although no final decision has been made yet. He said, "At this time, it's not clear which option to pursue. Both demerger and IPO options are currently available." Explaining the reasoning for the demerger, he said it could directly unlock value for existing shareholders. He added, "The demerger gives us the opportunity to unlock value for Adani Enterprises shareholders, which they expect." An IPO doesn't offer this on day one, even though it would certainly generate a lot of buzz." The group is also considering bringing in a strategic or anchor investor to establish appropriate valuation benchmarks for the airport business before any listing or restructuring. While no specific timeline has been given, Jeet Adani indicated that the situation will become clearer in the medium term. He said, “I can't give a specific date, but you will definitely see something happening in the next two to three years.”

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