Bain Capital to soon acquire Adani Capital

17 Jul 2023 , 11:21 AM

As Gautam Adani seeks to realign his business interests and concentrate on core infrastructure by conserving cash, Bain Capital is edging out Carlyle to close the acquisition of the seven-year-old shadow bank, Adani Capital, according to news reports.

The news that three private equity (PE) groups, including the aforementioned two and Cerberus Capital Management, were in the closing stages of the process was originally reported on July 10.

Around 10% of Adani Capital is owned by the management, which is headed by former Lehman Brothers and Macquarie investment banker Gaurav Gupta, who joined the business in 2016. Nearly 90% of the business is owned by Gautam Adani, and it has been up for sale recently.

With a book value estimated at Rs 800 crore, the company had Rs 3,977 crore in assets under management at the end of FY23, an increase of 63% from the previous year. Bain is anticipated to purchase the company for Rs 1,500 crore, which is twice its book value, and inject Rs 500 crore of primary capital into it as growth equity. 

Although it’s anticipated that Gautam Adani will cash out on his investment, it’s not yet known if the management team will keep a stake in the bank.

For feedback and suggestions, write to us at [e-mail]