BENGALURU: India’s Adani Group is in advanced talks with West Asia-based sovereign funds to raise up to $2.6 billion for its airport expansion and green hydrogen projects, the Business Standard daily reported late on Sunday.

The Adani Group’s flagship firm Adani Enterprises may reduce its stake in either the airport-holding firm or the green hydrogen business, or both, for investment funds, the report added, citing a source close to the development.

The timing of the fundraising is yet to be determined, but it is expected to be launched in the market by mid-2024, the newspaper said.

The Adani Group did not respond to a Reuters’ request for comment.

Billionaire Gautam Adani-led companies are offering an opportunity to infrastructure funds, which are keen on long-term investments in India, a banker close to the development said, as per the report.

A report by US shortseller Hindenburg in January last year, alleging wrongdoing, had eroded $150 billion in the value of shares in Adani Group companies and forced it to scale back some of its aggressive expansion plans.

Adani Group stocks rise ahead of Indian court ruling on regulatory probe

However, a Supreme Court ruling that the group does not need more scrutiny, along with investments from Abu Dhabi conglomerate International Holding and US boutique investment firm GQG Partners have restored investor confidence.

In 2023, the Adani Group raised funds from various entities, including Qatar Investment Authority, TotalEnergies and GQG Partners.

In January, the group said it would invest 624 billion rupees ($7.52 billion) in the Indian states of Maharashtra and Telangana as part of its seven trillion-rupee expenditure plan for the next decade.