In a strategic financial move, Adani Group-controlled Mumbai International Airport (MIAL) has pledged a 51% stake in the upcoming Navi Mumbai airport to the State Bank of India (SBI). This development is linked to a substantial INR 12,770 crore funding facility extended by SBI for the airport’s development.
Currently, MIAL holds a 74% share in the paid-up equity of Navi Mumbai International Airport (NMIAL). According to Adani Enterprises, operations at the greenfield airport are anticipated to commence in the March quarter of FY25, marking a three-month delay from the initially projected opening date. The Adani group had previously secured financial closure for NMIAL in March 2022, with SBI agreeing to underwrite the entire debt requirement of INR 12,770 crore.
The 51% stake pledged to SBI represents one of the most significant stakes in the Indian airport sector. NMIAL had arranged a financing deal worth INR 8,645 crore with Yes Bank for the airport’s Phase I, covering various aspects including design, development, and construction. However, this arrangement was later cancelled unilaterally by Yes Bank. Upon completion, the Navi Mumbai airport is expected to handle 90 million passengers and 2.6 million tonnes of cargo annually by 2031-32. The first phase will provide an initial capacity of 20 million passengers. The airport’s full infrastructure will include four passenger terminals and two parallel runways.
In comparison, Mumbai International Airport currently accommodates 55 million passengers annually. Adani Airport Holdings (AAHL), which controls 23% of the Indian air traffic and serves around 20% of the passenger base, recently sought approval from its shareholders to raise its borrowing limit from INR 20,000 crore to INR 30,000 crore through a special resolution at its annual general meeting.
For FY24, AAHL reported a dramatic increase in consolidated net losses, reaching INR 227 crore, up from INR 52 crore in FY23. This occurred despite a 26% year-on-year increase in total income, which reached INR 7,394 crore. On a stand-alone basis, the company posted a net profit of INR 473 crore, marking a substantial 360% year-on-year growth. AAHL operates seven airports across India, including Mumbai International Airport. For FY24, MIAL reported a loss of INR 608 crore, while Ahmedabad airport recorded a loss of INR 327 crore. The remaining airports in Jaipur, Guwahati, Thiruvananthapuram, Mangaluru, and Lucknow also posted losses for the same period.
