Adani keen to increase stake in Mumbai airport

Adani Airports Holdings Limited (AAHL), the second-largest airport operator in India, has expressed its interest in increasing its stake in Mumbai International Airport (MIAL). Currently, AAHL holds a 74% stake in the airport, while the remaining 26% is owned by the Airports Authority of India (AAI).

The Adani Group had acquired the majority stake in Mumbai International Airport from the GVK Group in August 2020. Now, AAHL is looking to further increase its share in the airport by acquiring a minority stake held by the government.

In its annual report, Adani Enterprises stated that AAHL is keen on bidding for all airports that the government intends to privatize. The company aims to acquire the government's minority stake in Mumbai airport. However, there has been no response from AAHL regarding this matter as of now.

For the Adani Group to acquire the minority stake of AAI in MIAL, the government would need to move forward with its earlier proposal to sell AAI's residual stake in public-private partnership airports, including Delhi, Mumbai, Bengaluru, and Hyderabad. This proposal was put on hold but could be reconsidered as part of the government's national monetization pipeline. The approval of the Union Cabinet would be required for this proposal to proceed.

Apart from Mumbai, AAI also holds a 26% stake in Delhi International Airport and lower stakes of 13% each in Hyderabad and Bengaluru airport entities.

As the second-largest airport operator in India, Adani's interest in increasing its stake in Mumbai International Airport showcases its ambition to expand its presence in the aviation sector. If successful, this move would strengthen Adani's position in the country's airport industry, with Mumbai International Airport being the second-largest airport in India in terms of passenger traffic, following Delhi's Indira Gandhi International Airport.