Immediately after Ahmedabad-based¬†power, port and mining company¬†Adani Enterprises Ltd (AEL) decided to part with its real estate business a day ago, the¬†Adani¬†family clarified that they are keen on retaining¬†Adani¬†Infrastructure Development¬†Pvt¬†Ltd (AIDPL).
On Thursday, Feb 9, the board of directors of¬†AEL had decided to divest its holdings in the company’s realty business after proper independent third party valuation at its meeting.
“We may either sell it completely to a third party or go in for a joint venture or Adani¬†Group may¬†demerge¬†and form a separate real estate company. We have kept all the options open as we want to categorically focus on our core businesses,” Executive Director of¬†Adani¬†Enterprises and¬†CFO¬†of the group, Devang¬†Desai¬†had said while announcing the company’s third quarter results on Thursday.
However, Chairman of the¬†Adani¬†Group,¬†Gautam¬†Adani¬†on Friday said that this announcement by the company “led to some confusion that the¬†Adani Group is exiting the real estate business altogether, which is definitely not the case.”
The¬†Adani¬†family led by¬†Gautam¬†Adani, the promoter of the¬†Adani¬†Group, is set to take over¬†AIDPL¬†and is committed towards a successful execution and completion of its current projects and its future growth plans, said Adani¬†in a statement on Friday.
Presently, the¬†Adani¬†Group is developing¬†Shantigram¬†Township in Ahmedabad, spread across 616 acres of land, in which around 400¬†lakh square feet of land will be developed. The project cost of the township is estimated to be around¬†Rs 5,000 crore in which it intends to build up to 15,000 houses.
Shantigram¬†Township, christened after the names of¬†Adani’s¬†parents, is also home to the new corporate office of the group in the city.
The¬†Adani¬†family will continue to invest in the real estate business like it has done in realty projects in¬†Ahmedabad,¬†Mumbai¬†and Delhi. The family will now be responsible for future investments in the realty business considering it as one of the key business drivers.¬†Adani¬†Enterprises Ltd (AEL) will focus on its capital intensive core businesses of power, ports and coal mining.
It should be noted that market players believe that if the¬†Adani¬†family had not taken this decision to retain its realty business, the announcement would have created a negative impression about¬†Gujarat’s¬†real estate market.
“If a local company like the¬†Adani¬†Group would have quit the real estate business, it could be interpreted that the market is not in a good condition,” said sources. The group may form a new company for the realty business and come up with an¬†IPO¬†as the group’s investment in realty projects could be around¬†Rs25,000 crore, said sources.