Bain Capital in advanced talks to buy 90% stake in Adani shadow bank: Report
Gaurav Gupta, will retain the remaining 10% stake in the firm, and Bain Capital will invest another 10 billion rupees to grow the business, according to the report by Business Standard. The management owns 10% stake in the company while billionaire Gautam Adani owns approximately 90 per cent. According to a report by India Today, Bain Capital has surpassed Carlyle to emerge as the frontrunner in the acquisition process.
The move comes as Adani group focuses on its infrastructure development businesses, including building a new airport on the outskirts of Mumbai. The potential sale of Adani Capital can help cut liabilities on the conglomerate’s balance sheet Adani Capital started its lending operations in April 2017 and has more than 160 branches across India, according to its website. The non-bank lender was planning an IPO as early as 2024, selling about a 10% stake with a targeted valuation of $2 billion, Managing Director and Chief Executive Officer Gaurav Gupta said in an interview last year.
Adani Capital, established seven years ago, is led by Gaurav Gupta, a former Lehman Brothers and Macquarie investment banker who joined the conglomerate in 2016. Over the past few months, Adani Capital has been up for sale, attracting interest from three private equity groups, including Bain Capital, Carlyle, and Cerberus Capital Management. In a short span of four years, Adani Group has managed to raise a whopping $ 9 billion.
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