Bain Capital to buy out 90% stake in Adani Capital, Adani Housing
Bain Capital has also committed $120 million in primary capital to facilitate the company’s ongoing growth. “I have known Gaurav since his days as an investment banker," said Gautam Adani, the chairman of Adani Group. “He wanted to become an entrepreneur and I backed him.
He has not only built a good financial services business with a focus on the underserved in semi-urban and rural India but has also valuably contributed to the Adani Group. I am very happy that a credible investor like Bain Capital is stepping in now and this will help the business grow manyfold from here." 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.
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