Bain Capital Agrees To Buy A 90% Stake In Adani Capital

The Adani Group has sold a 90% stake in Adani Capital and Adani Housing to the Bain Capital private equity company. The stake has been sold for Rs. 1,440 crore. This transaction has seen the Adani Group exiting the financial services industry.

Bain Capital to buy a 90% stake in Adani Capital

The valuation of Adani Capital and Adani Housing stands at Rs. 1,600 crore. The managing director and chief executive officer at the Adani firms, Gaurav Gupta, will hold the remaining 10% of the stake.

Bain is also planning to invest $120 million as the primary capital that will be used for the growth of the company. It has also committed a liquidity line of $50 million in the form of non-convertible debentures (NCDs).

The chairman of Adani Group, Gautam Adani, said that Gupta and the team had created a financial service business that targeted the semi-urban and rural regions in India that were not properly served by financial service firms.

One of the partners at Bain Capital, Rishi Mandawat, said, “Gaurav and the team have built a scale lending business that supports entrepreneurialism and is trying to solve the $300 billion+ unmet retail MSME (micro, small and medium enterprises) credit demand in the country. The company has strong business fundamentals, an experienced team, with the ability to serve and expand to core segments like agriculture, hosing and to under-banked rural areas.”

Tapping growth opportunities at Adani Capital

Mandawat noted that the company had identified unique opportunities in its partnership with Gaurav and the team. As such, it will be working towards the next phase of growth at the company. The move would be enabled through giving access to operating resources, capital and strategy.

Gupta noted that in the last six years, the company had created a strong brand. The executive noted that the company had been committed to supporting micro entrepreneurs and first-time homeowners based in Bharat. It also planned to emerge as a convenient and economical lender for customers through technology.

Gupta also said that Bain Capital shared the company’s vision of ensuing affordable finance was available to its customers. Adani Capital seeks to make lending solutions convenient and affordable. The company also plans on supporting the next generation of entrepreneurs and businesses in India.

Adani Capital has gained significant adoption with assets under management worth nearly $500 million. The company also boasts of a massive network with over 170 branches across eight states. The team at the company comprises more than 2,500 professionals. With the exit of Adani Capital, Adani Group will undergo some changes in branding.

The Adani Group is planning to now focus its operations on the core infrastructure business and prepay debt. The company is already working on several projects that will pave the way for the next phase of growth. The group is working on a copper smelter and PVC project that will be a major driver of growth.