India

Bain Capital to Buy 90% of Adani Capital and Adani Housing

 

US-based investment firm Bain Capital said on Sunday it has done a deal to buy 90% of the Adani family’s investments in Adani Capital and Adani Housing.

Gaurav Gupta will retain the remaining 10% stake in Adani Capital and will continue to serve as its managing director and CEO, Bain said.

Adani Capital is the non-banking financial arm of the Adani group which started its lending operations in 2017. Bain has committed $120 million for the arm and an additional liquidity line of $50 million in the form of Non-Convertible Debentures.

Bain’s interest in the firm, owned by billionaire Gautam Adani, comes at a time when it has been under pressure after US short seller Hindenburg Research accused it of improper business practices, leading to a more than $150 billion plunge in value of the group’s main stocks.

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Adani Capital to be standalone lender

The transaction, which is expected to close in the fourth quarter of this year, aims to position Adani Capital as a standalone company to expand lending, Bain said.

“I am very happy that a credible investor like Bain is stepping in now and this will help the business grow manyfold from here,” Gautam Adani, chairman of the Adani group, said.

Bain’s investment follows other international investments by companies like GQG which raised its stake in Gautam Adani’s conglomerate by about 10% in May.

“With Bain committing 1,000 Crore rupees of capital in the company, we are now equipped to grow 4x from here,” Gupta said in a statement.

Adani group stocks have recovered by around $50 billion since the Hindenburg-triggered stock rout early this year after Gautam Adani assured investors and repaid debt.

 

  • Reuters with additional editing by Jim Pollard

 

ALSO SEE:

 

India Regulator ‘Draws A Blank’ In Adani Foreign Links Probe

 

Probe Into Some Adani Offshore Deals for Disclosure Violations

 

Adani Group Prepays $900m of Share-Backed Financing

 

India’s Adani Bids to Reassure Investors as Rout Continues

 

Indian Protesters Say Modi Favoured Adani as Losses Top $110bn

 

Dow Jones Drops Adani Enterprises

 

Shares of India’s Adani Group Plunge After Scathing US Report

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

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