Sources indicate that Bain Capital and Carlyle Group Inc., both reputed firms, find themselves among potential acquirers eyeing a controlling interest in Gautam Adani’s shadow bank, commonly referred to as Adani Capital. Motivated by a desire to minimize liabilities while increasing focus on existing enterprises, this vital move has been triggered after scrapping their initial public offering plans following detrimental allegations made by short sellers resulting in considerable erosion of market value.

Bain Capital and Carlyle Group bids for Adani capital

In a surprising turn of events, it has come to light that Bain Capital and Carlyle Group Inc., prominent contenders in the financial realm, have emerged as potential suitors for a controlling stake in Gautam Adani’s shadow bank. 

Sources familiar with the matter have revealed this intriguing development, indicating Adani’s intention to safeguard his financial resources and shift his focus toward core enterprises.

Apparently, the Adani Group has engaged the services of an advisor to seek potential buyers for Adani Capital. This decision comes on the heels of scrapping the initial public offering (IPO) plan for the non-bank lending institution. Once the bids are received, the Adani Group will deliberate whether to divest entirely or retain a minority stake in the venture, as per insiders.

Should the sale of Adani Capital transpire, it would follow the aftermath of Hindenburg Research, a US-based short seller, raising allegations of fraud against the Adani Group in January. The conglomerate has vehemently refuted these claims, yet the damaging report inflicted substantial harm, causing a staggering erosion of over $150 billion from the group’s market value. By offloading the shadow bank, the Adani Group aims to alleviate the liabilities burdening its financial statements, sources suggest.

Nevertheless, it is crucial to note that discussions are still ongoing, and the potential bidders may ultimately opt against submitting any formal offers. Moreover, the Adani Group retains the option to retain ownership of the asset for an extended period, indicating a degree of uncertainty surrounding the outcome. 

Media reports surfaced on Monday, citing undisclosed sources, highlighting the interest expressed by private equity funds in Adani Capital. These reports further suggested that Adani Capital is seeking a valuation of approximately 20 billion rupees ($243 million).

According to information available on its website, Adani Capital commenced its lending operations in April 2017 and currently boasts a network of over 160 branches spread across India. 

Last year, in an interview, Gaurav Gupta, the Managing Director and Chief Executive Officer, expressed aspirations for an IPO as early as 2024. The plan involved the sale of a 10% stake, with a targeted valuation of $2 billion, emphasizing the ambitious vision held by Adani Capital.

In this ever-evolving narrative, the perplexing twists and turns continue to captivate, leaving us pondering the fate of Adani Capital and its potential impact on the Adani Group’s financial landscape.