Analysts foresee boosted investor confidence in Adani.
Adani Group’s discussions to acquire a stake in Emaar India could bolster its real estate portfolio and investor confidence. Analysts see this move as a sign of recovery for the Ahmedabad-based conglomerate, still navigating the fallout from its 2023 accounting scandal.
A Strategic Collaboration
Emaar Properties, the developer behind the iconic Burj Khalifa, is reportedly in talks with Adani Group regarding a stake sale in its Indian business. While the specifics of the deal are yet to be finalised, media reports suggest the stake could range from 70% to 100%, with a valuation of up to ₹50 billion ($578 million). If finalised, this would mark Adani Group’s most significant foray into real estate.
“This is a massive opportunity for Adani to expand its real estate portfolio, particularly in tier-2 cities,” said Vijay Valecha, CFO of Century Financial. The deal would align Adani with Emaar’s reputation for quality construction and boost investor confidence globally.
Benefits for Both Parties
For Adani, this acquisition could consolidate its presence in the Indian real estate market, complementing its existing projects in Ahmedabad, Mumbai, Gurugram, and Pune. It follows Adani Realty’s recent success in securing the redevelopment contract for Mumbai’s Dharavi slum.
For Emaar, the sale represents an opportunity to refocus on its core markets. “Divesting Indian operations could allow Emaar to optimise resources and capital for higher-growth regions,” said Ray Verma of Eden Realty.
Context and Market Impact
Emaar’s revenue growth, driven by Dubai’s property boom, saw a 30% increase in 2024, with international operations contributing 7% to its total revenue. Selling its Indian stake could streamline operations while reducing exposure to India’s evolving real estate market.
Meanwhile, Adani Group’s recovery has been bolstered by Hindenburg Research’s closure, removing a key source of market pressure. “This strengthens Adani’s position and boosts investor confidence,” Verma added.
A potential Emaar-Adani deal could mark a pivotal moment for both companies. While Adani stands to strengthen its real estate portfolio, Emaar can refocus on its core markets, creating a win-win scenario that may reshape investor perspectives on both brands.