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Bain Capital Deal to Acquire Adani Capital; Gaurav Gupta Stays MD

Bain Capital will acquire 90% of Adani Capital and Adani Housing.

Bain Capital has entered into an agreement to obtain 90% of Adani Capital and Adani Housing. The transaction will buy out 100% of the Adani family’s private investments, with Gaurav Gupta fully rolling his stake in the company and enduring to help as Managing Director and CEO.

On May 26, 2023, Adani Capital directed Avendus, which wants to raise Rs 1,500 crore via a primary and secondary issuance of shares and introduced discussions with private equity suitors.

Bain Capital has also dedicated $120 million in primary capital to ease the company’s continuing growth. Further, Bain Capital is making available a liquidity line of $50 million as Non-Convertible Debentures.

Gaurav has built a scale lending business that chains entrepreneurialism to solve the $300 billion+ unmet retail MSME credit demand. The company has robust business fundamentals, a knowledgeable team, and the ability to serve and enlarge to core segments like agriculture, housing and underbanked rural areas. 

Entrepreneurialism and growing consumption rates across India are driving the rise in the volume of MSMEs, establishing a vital segment of the Indian economy, contributing 30% of its gross domestic product, according to the Ministry of Micro, Small & Medium Enterprises. Despite their potential, only 10% of MSMEs have access to a formal source of credit to support growth aspirations, mainly more acute in rural areas. 

Adani Capital was founded in 2017 to democratise access to affordable, suitable lending solutions and care for India’s next generation of MSMEs and entrepreneurs. To realise that vision, Adani Capital has built an AUM of $500 million, a network spanning 170 branches across 8 states, and a team of over 2,500 professionals who explain its “customer-first” culture.

Bain Capital has profound knowledge in investing to sustain the growth and leadership of diversified financial services businesses in India and across the globe, including Axis Bank, 360One, Judo Bank, L&T Finance Holdings, Legacy Corporate Lending, etc.

The transaction will close in Q42023, pending essential regulatory and market approvals.

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