90% of Adani Capital and Adani Housing will be purchased by Bain Capital

24 Jul 2023 , 10:48 AM

On July 23, the US-based investment firm Bain Capital announced that it has agreed to buy 90% of Adani Capital and Adani Housing.

According to the agreement, Bain will purchase all of the Adani family’s private holdings in the business.

The deal is anticipated to be finalized in the final quarter of this year. The transaction’s objective is to establish Adani Capital as a stand-alone business so it can increase its lending activities.

Following other international investments by firms like GQG, which increased its share in Gautam Adani’s group by around 10% in May, came Bain’s investment.

The remaining 10% of the firm will stay in the hands of Gaurav Gupta, who will continue to lead Adani Capital as its Managing Director and CEO.

With Bain investing Rs 1,000 crore in the business, Gupta stated in a statement, ‘We are now prepared to grow 4x from here.’

According to the announcement, the investment company has committed $120 million for Adani Capital and a further $50 million in non-convertible debt as a line of credit for liquidity.

The Adani group’s non-banking finance division is called Adani Capital. The business started operating as a lender in 2017.

Gautam Adani, chairman of the Adani group, was reported by Reuters as saying, ‘I am very happy that a credible investor like Bain is stepping in now and this will help the business grow manifold from here.’

Adani Group has recently been under pressure after being accused of unethical behavior by American short-seller Hindenburg. The value of the group’s equities fell by nearly $150 billion as a result of the Hindenburg incident.

Since the Hindenburg controversy, the value of Adani Group equities has increased by about $50 billion.

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