Billionaire Gautam Adani has signed an agreement for the sale of his financial services business, marking an exit from a segment that he entered six years ago. Adani Finserve, a closely held company, will sell 90% of Adani Capital and Adani Housing to American investment firm Bain Capital for an undisclosed amount.
Adani Capital and Adani Housing are led by Gaurav Gupta, who joined the group in October 2016 to start the financial services business for the conglomerate. Gupta owns 10% of Adani Capital and Adani Housing, which together manages assets worth £410 million. He will continue to hold the 10% and run the financial services business under Bain's ownership. Adani Capital offers loans to MSMEs while Adani Housing provides affordable housing loan options for rural areas.
Bain will infuse £139.4 million in the financial services unit to facilitate its growth. The unit, reportedly valued at £200 million, will continue to use the Adani name for some time till the transition takes place including getting approval from the RBI. The Adani-Bain deal, stitched together by Avendus Capital and Rothschild, is expected to be concluded before the end of this year.