The Adani group has initiated talks with international strategic and financial investors to sell a stake in its non-banking finance business- Adani Capital. The process of divestment just began a few weeks back and is at initial stages.

It is gathered that much of the transaction is presently being worked out directly by the senior leadership of the group. “Some of the large players in the sector have been sounded off about the deal. If the response from these players isn’t encouraging, which will be known in about three months or so, the group may formally engage with bankers to initiate talks with private equity players.

According to sources, a few NBFCs with assets size of over ₹40,000 crore have been approached so far.

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The spokesperson of Adani group, though, refuted talks with NBFCs but added that “Adani Capital is looking to raise additional growth capital from international strategic and financial investors,” Responding to an email query from businessline, the spokesperson also ruled out Adani group’s complete exit from the non-bank business.

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The decision to sell a stake in Adani Capital is said to be a relatively new one and emerged when the group reviewed its position across all its businesses. “Given that the objective is to exit, at least in parts, from the group’s non-core businesses, Adani may not play hardball on valuations,” said the person quoted above.

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.

What started as a largely in house financing company in the recent years is said to have taken wings since 2019. “We know that in the last two years, they been very aggressive in the retail businesses as well and the quality of book is quite decent.,” said a CEO of an NBFC operating in the similar space. 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.

For those non-banks, looking at re-establishing their presence in some wholesale lines of business or strengthening the current book are expected to show interest in Adani Capital’s business.

Presently, Aditya Birla Capital and Piramal Finance are among the notably large NBFCs with the wherewithal to operate in these segments.