Bain to buy 90% stake in Adani Capital and Adani Housing for Rs 1,440 cr

Gaurav Gupta, Managing Director (MD) and Chief Executive Officer (CEO) of Adani Companies will retain the rest of the stake.

Bain will also invest an additional Rs. 983 crore as seed capital in the company to facilitate its growth. Besides, Bain Capital will also provide a liquidity line of Rs. 409 crore as non-convertible debentures to the company.

Gautam Adani, Chairman of the Adani Group, said that Gupta and his team have not only built a financial services business focusing on the underprivileged in semi-urban and rural areas of India, but have also made valuable contributions to the group.

“I am very happy that a trusted investor like Bain is now stepping in and this is going to help the business grow in multiple ways,” Adani said.

“Gaurav and his team have built a large-scale lending business that supports entrepreneurship and tries to solve the USD 300 billion demand for MSME (Micro, Small and Medium Enterprises) retail credit in the country. The company has strong business foundations, an experienced team, with the capacity to serve and expand in core sectors like agriculture, housing and under-banked rural areas,” said Rishi Mandawat, Partner at Bain Capital.

He added, “We see compelling opportunities to partner with Gaurav and the team to facilitate the next phase of growth for Adani Capital. This is done by providing access to significant capital, strategic and operating resources and deep experience in partnering with financial services firms in India and across the world.”

“It’s been an extraordinary six years. Having the capital, a strong brand, and most importantly, the freedom to build a business is perhaps unprecedented. For that, I thank Gautam Bhai for the opportunity and his belief in me,” said Gupta.

“Our aim has always been to support small business owners and first-time homeowners in Bharat and to be the most economical and convenient lender for our customers by leveraging technology. The team and I are delighted to welcome a partner like Bain Capital, who shares our vision of making financing available at affordable rates to our customers with a strong focus on customer literacy and education. With Bain’s commitment of Rs. 1,000 crore in the company, we are now poised for 4x growth from here.”

Adani Capital was established in 2017 to democratize access to affordable and appropriate lending solutions and support the next generation of MSMEs and entrepreneurs in India.

It has built a managed department of nearly $500 million, a network covering more than 170 chapters across eight states, and a team of more than 2,500 professionals.

The company will undergo a rebranding with the exit of Adani.

On the other hand, the Adani Group plans to focus on its core business of infrastructure and prepaid debt – both at the level of promoters and at the level of listed entities.

The group is currently engaged in the commissioning of the Navi Mumbai Airport and Ganga Expressway projects.

Last week, the Maharashtra government agreed to award the Dharavi redevelopment project to the group, and it will require investments worth Rs. 20,000 crores. The group is also setting up a copper smelter and a PVC project.

Its three listed companies – Adani Enterprises, Adani Green Energy and Adani Transmission plan to raise Rs. 33,000 crore via Qualified Institutional Placements (QIPs) by the end of the year.