Multi-billionaire business tycoon Gautam Adani’s Adani Realty is looking to pick up a stake in real estate major Emaar India. Senior management executives from Ahmedabad-based Adani Realty are currently in talks with Emaar leadership to chalk out a plan, which would involve the Indian company owning a part of the realtor, sources have told Business Today.
According to the sources, senior executives from Adani Realty are holding meetings with Emaar management at Dubai. “Talks have been initiated and Adani Realty and Emaar group executives are discussing a possible transaction, which would involve Emaar selling a part of its ownership in Emaar India to the Adani group,” a person aware of the developments told BT.
Emaar India is owned by its global parent Emaar Group – a leading real estate developer headquartered in Dubai, UAE.
Incidentally, Adani Realty that started its journey some 12 years ago, has a significant presence in the desert megacity. While, its segmental revenues are not being revealed, it is learnt from close sources that a large chunk of its business is in Dubai real estate market. In fact, the upcoming Dharavi redevelopment project is one of its first large scale project in India and the company has recently entered the Delhi-NCR region – India’s second-largest real estate market.
Emails sent to Adani Group and calls and messages to Emaar India top management remained unanswered.
The contours of a possible transaction are being discussed and not final as yet. Sources say, the two entities are currently in early stages of their talks and the blueprint of the stake sale is being chalked out. “There is no certainty on the amount of stake to be picked up [by the Adani Group] as a lot of details are yet to be finalised,” another source said.
Gurgaon-headquartered Emaar India is a leading player in the country’s commercial and residential real estate market. Earlier, Kalyan Chakrabarti, CEO, Emaar India, had revealed plans to launch 8-10 million square-feet of real estate projects this year, investing close to a billion US dollars (Rs 8,400 crore at current rate) till 2029. In a recent media interaction, he had said that 80 per cent of the new projects will be in Gurgaon. Currently, the company has a presence in five markets – Gurgaon, Jaipur, Lucknow, Mohali and Indore.
As per its annual report, Emaar India Ltd. witnessed its operating revenue fall 31.4 per cent in FY2023 to Rs 1,670 crore. In the previous year, its operating revenue stood at Rs 2,434 crore. While its bottom line went into red. Down from Rs 189 crore net profit in FY2022, it posted Rs 118.7 crore net loss in FY2023.