The financial services company owned by billionaire Gautam Adani will be sold, marking his exit from a market he joined six years ago. 90% of Adani Capital and Adani Housing will be sold by Adani Finserve, a privately owned company, to American investment giant Bain Capital for an unknown sum.
Gaurav Gupta, who joined the power to-airports group in October 2016 to launch the conglomerate's financial services division, is the CEO of Adani Capital and Adani Housing. Adani Capital and Adani Housing, which together manage assets worth $500 million (Rs 4,100 crore), are companies that Gupta controls 10% of. He will continue to control the 10% and manage the financial services company while it is owned by Bain. While Adani Housing offers inexpensive housing loan choices for rural areas, Adani Capital gives loans to MSMEs.
To support its expansion, Bain will invest $170 million (Rs 1,394 crore) in the financial services division. The unit, which is allegedly valued at Rs 2,000 crore, would continue to operate under the Adani name till the transfer is complete, which includes receiving RBI approval. Before the end of this year, the Adani-Bain agreement, which was put together by Avendus Capital and Rothschild, is anticipated to be completed.
“I have known Gaurav since his days as an investment banker,” said Adani. “He wanted to become an entrepreneur and I backed him. He has not only built a good financial services business with a focus on the underserved in semi-urban and rural India but has also valuably contributed to the Adani Group. I am very happy that a credible investor like Bain Capital is stepping in now and this will help the business grow many fold from here."