MUMBAI: The Adani family is reportedly in advanced discussions to acquire Emaar India Ltd, the Indian real estate arm of Dubai’s Emaar Properties, in a potential $1.4 billion (AED5.14 billion) deal.
The deal, if finalised at the said price, would value Emaar India at 7.73 times its net worth of AED664 million as of December 2024.
Discussions on the transaction structure are ongoing, with sources indicating that an unlisted Adani entity may inject around $400 million in equity as part of the deal. While an agreement could be reached as early as April as reported, the negotiations remain fluid, and there is no certainty of a final deal, said people familiar with the matter.
Valuation highlights & financial turnaround
Emaar India, which had total assets of AED6.834 billion and liabilities amounting to AED6.170 billion as of December 2024, has seen a notable financial turnaround. After closing 2023 with a net loss of AED710.32 million, the company appears to have returned to profitability, posting a net profit of AED250.94 million for 2024.
The company’s revenue, however, declined to AED725.23 million in 2024 from AED1.271 billion in the previous year. Emaar India also carries borrowings of AED1.814 billion (Rs4,255 crore), making the potential deal with Adani crucial in reshaping its financial structure.
Emaar’s India journey
Emaar Properties, which holds a 77.01 per cent stake in Emaar India, originally entered the Indian market in 2005 through a joint venture with MGF Developments, forming Emaar MGF Land Ltd. However, the partnership dissolved in 2016, leading to the operations under the rebranded Emaar India Ltd.
In January, Emaar confirmed it was in talks with several potential buyers, including Adani, for a stake sale in its Indian business.
Strategic fit for Adani
For Adani, the acquisition would significantly bolster its real estate portfolio in India, which currently spans 24 million square feet of completed properties and an additional 61 million square feet under development. Adani’s real estate arm also emerged as the top bidder for Mumbai’s largest housing redevelopment project, valued at Rs360 billion ($4.3 billion), earlier this year.
With Adani aggressively expanding its real estate footprint, acquiring Emaar India at a valuation of 7.73 times its net worth could position the conglomerate as a dominant player in the sector, while providing Emaar with a strategic exit from the Indian market.
Both Adani and Emaar declined to comment on the ongoing discussions.
