Bain Capital, Carlyle study bids for Gautam Adani’s shadow bank

BLOOMBERG 

Bain Capital and Carlyle Group Inc are among potential bidders for a controlling stake in Gautam Adani’s shadow bank, according to people familiar with the matter, as the Indian billionaire looks to conserve cash and focus on core businesses.
The Adani Group is working with an adviser to look for buyers for Adani Capital after an initial public offering plan for the non-bank lender was scrapped, the people said, asking not to be identified as the information is private. The Adani Group will decide whether to completely exit or keep a minority stake after the bids are in, the people said.
A potential sale of Adani Capital would come after US-based short seller Hindenburg Research in January leveled fraud allegations against Adani Group, which has denied any wrongdoing. The report wiped out more than $150 billion from the conglomerate’s market value at one point. Selling the shadow bank can help cut liabilities on the Adani Group’s balance sheets, one of the people said.
Deliberations are ongoing and the potential bidders may not proceed with any formal offer, the people said. The Adani Group can also choose to keep the asset for longer, they added. Representatives for Bain and Carlyle declined to comment, while an Adani Group representative didn’t immediately offer a comment.
The Economic Times reported the private equity funds’ interest in Adani Capital, citing unnamed people, adding that Adani Capital is looking for a valuation of about 20 billion rupees ($243 million).
Adani Capital started its lending operations in April 2017 and has more than 160 branches across India, according to its website.
The non-bank lender was planning an IPO as early as 2024, selling about a 10% stake with a targeted valuation of $2 billion, Managing Director and Chief Executive Officer Gaurav Gupta said in an interview.