Global private equity firm Bain Capital is reportedly in advanced talks to acquire Adani Capital, the shadow banking arm of Gautam Adani’s conglomerate, for Rs 1,500 crore, the Economic Times reported.
According to sources directly involved, Bain Capital has overtaken Carlyle to emerge as the frontrunner in the acquisition process, as Adani aims to revive its business interests and focus on core infrastructure while conserving cash.
Adani Capital, founded seven years ago, is led by Gaurav Gupta, a former Lehman Brothers and Macquarie investment banker who joined the collective in 2016. The management team including Gupta owns about 10 percent of the company, while Gautam Adani owns about 90 percent.
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.
By the end of FY23, Adani Capital had reported assets under management of Rs 3,977 crore, an increase of 63 percent over the previous year, with book value estimated at Rs 800 crore.
The acquisition deal is expected to fetch Bain Capital Rs 1,500 crore, double the book value, and in addition, inject Rs 500 crore as seed capital for future growth.
Although Gautam Adani is expected to pull out of its investment, it is uncertain whether the current management team will maintain a minority stake and continue to operate the company.
In FY23, Adani Capital recorded a total disbursement of Rs 2,482 crore and a total income of Rs 599 crore, with a profit after tax of Rs 105 crore.
Both Bain Capital and Adani Group declined to comment and Gaurav Gupta did not respond to emails seeking clarification, the Economic Times reported.
