Adani Group to Sell 90% Stake in Adani Capital and Adani Housing to Bain Capital

Global private equity firm Bain has agreed to acquire 90% of Adani Capital and Adani Housing, the non-banking financial arm of the Adani group, which started its lending operations in 2017. The transaction will buy out all of the Adani family’s private investments in the company. In contrast, Gaurav Gupta, a former Lehman Brothers, and Macquarie investment banker, will retain his remaining 10% stake in the company and continue to serve as its Managing Director and CEO.

The deal is worth around Rs 1,600 crore and will boost the non-banking lender, struggling since it launched six years ago. The move comes as the Adani group is trying to reduce liabilities on its balance sheet and focus more on infrastructure projects after a damaging report by short-sellers in January this year roiled the markets and wiped out the stock prices of some of the group’s companies.

According to the statement, Bain will invest $120 million in primary capital and immediately provide a liquidity line of $50 million to facilitate Adani’s ongoing growth. It will also bring its deep investment expertise to support the management team in achieving its ambitious business goals, including expanding Adani’s lending capabilities, developing innovative products and services, and reaching additional underserved communities across India.

The acquisition of Adani Capital and Adani Housing will be a significant milestone for the Adani group as it becomes a standalone, fully-fledged financial services company. This capital infusion will allow the company to expand its lending operations and introduce innovative, customer-centric financial products and services, benefiting micro-entrepreneurs, small farmers, first-time homeowners, and other underserved communities in India.

“The Adani group has always believed in empowering its people and communities, and this is an opportunity for us to further our commitment. We look forward to working with the leadership of Bain Capital as we embark on this journey,” Gautam Adani, Chairman of the Adani group, said in a statement.

Avendus Capital was the sole financial advisor to Adani Capital, Adani Housing Finance, and their shareholders on this transaction, while Rothschild advised Bain Capital on the deal. Avendus has a rich track record of supporting the growth of financial services businesses in India and globally, advising on over 20 M&A deals and more than 100 PE investments in the sector. These include Axis Bank, 360One (formerly IIFL Wealth), Judo Bank, L&T Finance Holdings, Legacy Corporate Lending, and others. The team includes senior-level banking and M&A professionals with deep domain knowledge and experience in the Indian market. The company has offices in Mumbai and Delhi.