Private equity groups Bain Capital, Carlyle Group and Cerberus Capital Management are set to make binding bids in the next few weeks to buy out Gautam Adani’s six-year-old shadow bank, Adani Capital, as the billionaire businessman looks to exit non-core businesses and conserve cash for his principal operations, said a report. Adani Capital has Rs 4,000 crore of assets under management (AUM) and Rs 800 crore in book value. The group is looking 2-2.5 times the book value, amounting to Rs 2,000-crore valuation.
According to the report the new investor will also infuse Rs 1,000-1,500 crore in the company as growth capital. While most of the bidders are keen on full ownership of the business, the promoters are expected to decide whether a small stake would be retained for the future. Adani Capital was planning on an initial public offering (IPO) in 2024 to raise Rs 1,500 crore, and offering a 2 per cent stake. However, this was before the damning Hindenburg Research report was released.
Adani Capital offers retail and wholesale lending across six verticals, with the farm sector being the largest of them all. It also provides loans to small and medium businesses, and has its presence in nine states including Gujarat, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh, Telangana, Madhya Pradesh, Uttar Pradesh and Tamil Nadu.
Meanwhile, earlier reports suggested that Adani Group promoters are docking their holdings in the group companies through a combination of primary and secondary stake sales as they believe that building cash reserves is the best way forward considering the uncertain global investment environment. The Adani Group promoters have sold stakes to US-based GQG Partners so far and are in discussions with other global investors. The report added that the promoters are in talks with a West Asia-based fund and the next transaction is expected to be done by September.
