Adani Group: Bain Capital will buy 90 percent stake in Adani Group’s company, deal with American firm confirmed.
US-based private equity firm Bain Capital has signed an agreement to acquire 90 per cent stake in Adani Group’s non-banking financial company Adani Capital and Adani Housing. This was announced on 23 July. However, the current Managing Director and CEO Gaurav Gupta will retain the remaining 10 per cent stake.
According to media reports, the total valuation of Adani Group’s financial services business is Rs 1,600 crore. At the same time, with this agreement, the Adani family has sold almost all its stake in its banking business. These were launched in 2017. According to the report, Bain Company under the leadership of Gaurav Gupta will invest an additional Rs 983 crore for the growth of the banking companies.
Gautam Adani gave a statement on the agreement
Adani Group Chairman Gautam Adani said that I have known Gaurav since his investment banker days. He said he wanted to become an entrepreneur and I supported him. He has not only built a fine Financial Banking Services business focusing on the underprivileged in semi-urban and rural India, but has also made valuable contributions to the Adani Group. I am very happy that a credible investor like Bain Capital is now stepping in and will help the business grow manifold from here on.
Adani group shares fell heavily after Hindenburg’s report
In January this year, short seller firm Hindenburg released a report on the Adani group. In this report, allegations were made that the Adani group rigged the shares and rigged them for many years. There was a lot of uproar after this report came to the fore and the shares of Adani group companies came crashing down.
Adani Group focusing on new projects
However, Adani Group also took many big steps to win the confidence of investors. Simultaneously, the Adani Group is focusing on its infrastructure development business, which includes building a new airport on the outskirts of Mumbai.