Adani Capital Likely Being Circled By Investment Giants For Potential Acquisition

Three private equity firms are reportedly lining up bids to take over Adani Capital, the Adani Group’s non-financial services banking company (NBFC).

What Happened? Private equity firms Bain Capital, Carlyle Group, and Cerberus Capital Management are preparing binding bids to acquire Adani Capital, Gautam Adani’s non-core shadow bank, the Economic Times reported, citing sources.

The NBFC’s management, led by Gaurav Gupta, owns around 10% of the business, while the promoters own nearly 90%. The potential buyers are considering a complete buyout, even if the current management team continues to operate the business.

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Adani Capital has assets under management of ₹4,000 crore and a book value of ₹800 crore. The Adani Group is expecting a valuation of ₹2,000 crore, which is around 2-2.5 times the book value, the report said.

New investors are also likely to inject growth capital of between ₹1,000 crore and ₹1,500 crore.

The business daily reports that while the promoters might choose to retain a small stake based on the final valuation, most bidders have expressed interest in full ownership.

The promoters might choose to keep a small stake based on the final valuation, but most bidders have shown interest in obtaining full ownership, according to ET. The company had previously planned an IPO in 2024 but faced challenges after coming under scrutiny of short-seller Hindenburg Research earlier this year.

Adani Capital offers retail and wholesale lending across various verticals, with a focus on the farm sector. It provides business loans, commercial vehicle financing, home loans, and supply chain financing. The company operates in multiple states, ensuring low concentration risks.

It was previously reported that Adani Group's promoters were reportedly planning to sell more of their stakes in their group's companies to seize new opportunities and create a cash reserve even after selling shares worth around $3 billion (₹24,700 crore) to Rajiv Jain's GQG Partners in recent months.

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