Bain Capital in talks to acquire Adani Capital for Rs 1,500 crore: Report

Bain Capital is in advanced talks to acquire Adani Group’s shadow bank Adani Capital, edging past Carlyle and Cerberus Capital Management, The Economic Times (ET) reported on Monday.

The Adani Group is selling its shadow bank as it looks to realign its business interests and focus on preserving cash. The bank offers both retail and wholesale lending across six verticals. The largest among these is the farm sector.

Adani Capital is led by former Lehmann Brothers and Macquarie investment banker Gaurav Gupta and owns a 10 per cent stake in the company. The rest 90 per cent is owned by Gautam Adani. Adani’s stake has been up for grabs for a while now.

At the end of 2022-23, the company had assets under management (AUM) worth Rs 3,977 crore. It was up 63 per cent from Rs 800 crore from the previous year.

According to ET, Bain is expected to pay Rs 1,500 crore for the company and also infuse Rs 500 crore of primary capital into the firm as growth equity.

Even though Adani is expected to monetise his investment via an exit, it's unclear if the management team will retain a stake and run the company.

Adani is working with Avendus for the sale of the stake.

In FY23, the company reported a net profit of Rs 105 crore. Its gross disbursements were Rs 2,482 crore and its total income was Rs 599 crore.