As the billionaire businessman seeks to exit non-core businesses and conserve cash for his primary operations, private equity firms Bain Capital, Carlyle Group, and Cerberus Capital Management are expected to make binding offers to purchase Gautam Adani's six-year-old shadow bank, Adani Capital, in the coming weeks, according to multiple people involved.
Around 10% of Adani Capital is owned by the management, which is headed by former Lehman Brothers and Macquarie investment banker Gaurav Gupta, who joined the conglomerate in 2016. Nearly 90% of the company, which is up for sale, is owned by the promoters.
Even if the current management team runs the company, the funds are considering a 100% buyout.
Assets under management (AUM) total Rs 4,000 crore and book value is Rs 800 crore for the company. Adani Group is thought to be anticipating 2-2.5 times the book value, or a valuation of Rs 2,000 crore.
According to the individuals cited above, the new investor will also make a primary investment of Rs 1,000–Rs 1,500 crore in the company as growth capital.
The promoters are anticipated to make a final decision regarding the retention of a small stake for potential value increases based on the final valuation. The majority of bidders, however, are interested in acquiring the entire company.