Adani Group has exited the NBFC space with Bain Capital agreeing to acquire 90 per cent of Adani Capital and Adani Housing. The transaction will buy out 100 per cent of the Adani family’s private investments in the company. Adani Capital’s current Managing Director and CEO Gaurav Gupta will continue to lead the company and will hold a 10 per cent stake.

Bain Capital has also committed $120 million in primary capital to facilitate the company’s ongoing growth. Further, Bain Capital is also immediately making available to the company a liquidity line $50 million in the form of non-convertible debentures.

“Gaurav and the team have built a scale lending business that supports entrepreneurialism and is trying to solve the $300 billion+ unmet retail MSME credit demand in the country. The company has strong business fundamentals, an experienced team, with the ability to serve and expand to core segments like agriculture, housing, and to underbanked rural areas,” said Rishi Mandawat, a Partner at Bain Capital.

Also read: SBI-led consortium to fund Adani Group’s ₹34,000-crore PVC project in Mundra

On July 18, businessline reported that the deal was expected to close with Bain Capital or Cerberus Capital. On June 18, businessline also reported that Adani Group had put its NBFC arm on the block as part of its strategy to exit the non-core businesses.

Adani Capital financials

As per Adani Capital’s FY23 financials, its loan book stood at ₹2,690 crore and net profit at ₹90.68 crore. It largely operates out of four business verticals – farm equipment loans, commercial vehicle loans, business loans and supply chain finance. The lender also has a housing finance arm.

Gaurav Gupta said with Bain committing ₹1,000 core of capital in the company, Adani Capital is now equipped to grow 4x from here.

What started as a largely in-house financing company, in FY23, Adani Capital posted gross non-performing assets of 1.47 per cent while its total capital adequacy stood at 20.27 per cent. The NBFC has an AUM of nearly $500 million, a network spanning more than 170 branches across eight States, and a team of over 2,500 professionals.

Also read: Adani group’s financials stronger, healthier than before: Gautam Adani

Gautam Adani, Chairman, Adani Group, said, “I am very happy that a credible investor like Bain is stepping in now and this will help the business grow manifold from here.”

Bain Capital has a stake in a diversified set of financial services businesses in India and across the globe, including Axis Bank, 360One (IIFL Wealth), Judo Bank, L&T Finance Holdings, Legacy Corporate Lending, and more. The transaction with Adani group is expected to close in Q4 2023, pending necessary regulatory and market approvals.