Bain Capital in advanced negotiations to buy Adani Capital for Rs 1,500 crore: Report
As per earlier reports, Bain Capital, along with Carlyle Group and Cerberus Capital Management were in the final lap of making their binding bids.
- Jul 17, 2023,
- Updated Jul 17, 2023 9:32 AM IST
Amid reports that three private equity firms are in talks for a binding bid of Gautam Adani’s seven-year-old shadow bank, Adani Capital, it has now emerged that Bain Capital is reportedly in advanced negotiations to close the acquisition.
As per earlier reports, Bain Capital, along with Carlyle Group and Cerberus Capital Management were in the final lap of making their binding bids.
According to The Economic Times, Gautam Adani is looking to exit non-core businesses to conserve cash for the core operations. The company is owned by Gautam Adani who holds 90 per cent of the firm and former Lehman Brothers and Macquarie investment banker Gaurav Gupta who holds around 10 per cent in the company.
Bain is expected to pay up to Rs 1,500 crore for the company or twice the book value and infuse Rs 500 crore of primary capital through equity, the financial daily reported. It is still unclear if the management team will retain a small stake in the company.
At the end of FY23, the company had nearly Rs 4,000 crore of assets under management (AUM), which is a 63 per cent hike from a year ago. It reported gross disbursements of Rs 2,482 crore a total income of Rs 599 crore in FY23.
Adani is reportedly working with Avendus on the sale process.
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.
Also read: Three private equity groups set to make bids for Adani Capital buyout: Report
Amid reports that three private equity firms are in talks for a binding bid of Gautam Adani’s seven-year-old shadow bank, Adani Capital, it has now emerged that Bain Capital is reportedly in advanced negotiations to close the acquisition.
As per earlier reports, Bain Capital, along with Carlyle Group and Cerberus Capital Management were in the final lap of making their binding bids.
According to The Economic Times, Gautam Adani is looking to exit non-core businesses to conserve cash for the core operations. The company is owned by Gautam Adani who holds 90 per cent of the firm and former Lehman Brothers and Macquarie investment banker Gaurav Gupta who holds around 10 per cent in the company.
Bain is expected to pay up to Rs 1,500 crore for the company or twice the book value and infuse Rs 500 crore of primary capital through equity, the financial daily reported. It is still unclear if the management team will retain a small stake in the company.
At the end of FY23, the company had nearly Rs 4,000 crore of assets under management (AUM), which is a 63 per cent hike from a year ago. It reported gross disbursements of Rs 2,482 crore a total income of Rs 599 crore in FY23.
Adani is reportedly working with Avendus on the sale process.
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.
Also read: Three private equity groups set to make bids for Adani Capital buyout: Report