The two non-banking financial entities of the Adani Group, Adani Capital and Adani Housing, were purchased by the private equity company Bain Capital for an undisclosed sum on Sunday. The remaining ownership interest in the two businesses will be held by Gaurav Gupta, the current managing director, according to the statement.
For the NBFC’s continued growth, Bain Capital has also invested $120 million in primary capital. The Company will also have access to a $50 million liquidity line from Bain Capital in the form of non-convertible debentures.
“The transaction will buy out 100% of the Adani family’s private investments in the company, with Gaurav Gupta fully rolling his stake in the company and continuing to serve as Managing Director and CEO,” the release said.
“The company has strong business fundamentals, an experienced team, with ability to serve and expand to core segments like agriculture, housing and to underbanked rural areas,” said Rishi Mandawat, Partner, Bain Capital.
The NBFC is attempting to address the $300 billion+ unmet retail MSME credit demand in the nation by concentrating on lending to the MSMS, agriculture, and affordable housing segments.
“I have known Gaurav since his days as an investment banker,” said Gautam Adani, Chairman, Adani Group. “He wanted to become an entrepreneur and I backed him. He has not only built a good financial services business with a focus on the underserved in semi-urban and rural India but has also valuably contributed to the Adani Group.”
Adani Capital manages assets worth close to $500 million and has more than 170 branches spread out over eight states.
