Bain Capital to acquire Gautam Adani’s 90% stake in Adani Capital and Adani Housing Finance. The move comes as Adani seeks to concentrate on core businesses after facing a damaging short-selling attack earlier this year.
Adani Capital specializes in providing loans to small and medium-sized businesses, while Adani Housing Finance focuses on home loans. Former Macquarie investment banker Gaurav Gupta, who will continue as CEO and Managing Director, retains his 10% stake in the businesses.Adani Group’s extensive business empire, spanning coal mining to data centers and TV channels, has been recovering since the short-seller attack resulted in significant losses in market value.
To reassure its bankers, the Adani family has sold portions of its holdings in listed businesses, including electricity and green energy units, to repay share-backed loans. Florida-based GQG Partners has also shown confidence in Adani’s empire by investing $3.19 billion across four listed Adani companies.Adani Capital has a diverse range of services, including loans for farmers purchasing tractors and supply-chain financing.
While the financial terms of the deal were not disclosed, Bain Capital intends to invest an additional $170 million through primary capital and debt to establish Adani Capital as a standalone company. This marks the first time Gautam Adani has sold his complete stake in a company since Hindenburg Research’s report alleging accounting fraud and share price manipulation in January. Adani denies the accusations. The transaction also reflects private equity’s optimism regarding the growth potential of shadow banking in India, driven by rising incomes and an expanding economy.
Bain Capital’s investment aligns with Adani Capital’s vision of providing affordable finance to its customer segment, aiming for significant growth with the new capital commitment.
