According to reports private equity firms such, as Bain Capital are currently in discussions to acquire Adani Capital, the shadow bank owned by Gautam Adani. Adani is looking to sell off core businesses in order to concentrate on its core operations. Bain Capital is expected to offer around Rs 1,500 crore for the company, which has experienced growth, in its assets under management and has shown financial performance in the fiscal year 2023.
In a rather intriguing development reports have surfaced indicating that three private equity firms are currently engaged in discussions for a binding bid of Gautam Adani’s seven-year-old shadow bank Adani Capital.
However, it has recently come to light that Bain Capital is purportedly in advanced negotiations to finalize the acquisition. Previously it was reported that Bain Capital, Carlyle Group, and Cerberus Capital Management were reaching the final stages of submitting their binding bids.
According to sources Gautam Adani aims to divest from non-core businesses in order to preserve capital for the company’s core operations. Adani Capital is primarily owned by Gautam Adani himself who possesses a 90 percent stake while former Lehman Brothers and Macquarie investment banker Gaurav Gupta holds around 10 percent.
It is anticipated that Bain Capital will offer a payment of up to Rs 1,500 crore for the company which amounts to twice its book value. Furthermore, they are expected to inject Rs 500 crore of primary capital through equity. It remains unclear whether the management team will retain a minor ownership interest in the company.
At the close of the 2022-2023 financial year Adani Capital’s assets under management (AUM) reached nearly Rs 4,000 crore marking a substantial 63 percent increase from the previous year.
The company reported gross disbursements of Rs 2,482 crore and a total income of Rs 599 crore during the same period. In the process of selling Adani Capital Gautam Adani is said to be collaborating with Avendus.
Adani Capital offers retail and wholesale lending services across six distinct verticals with the agricultural sector being the largest among them. Additionally, it extends loans to small and medium-sized enterprises. It has established a presence in nine states including Gujarat Maharashtra Rajasthan Karnataka Andhra Pradesh Telangana Madhya Pradesh Uttar Pradesh and Tamil Nadu.
