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A non-bank lender backed by Gautam Adani, Asia’s richest man, plans to raise at least 1,500 crore rupees ($188 million) in an initial public offering in Mumbai that could take place as early as 2024.
Adani Capital’s first share sale will offer about a 10 percent stake in the shadow bank and will target a valuation of about $2 billion, managing director and CEO Gaurav Gupta said.
“If you are listed, then your ability to raise additional capital is higher,” Gupta said in an interview in Mumbai, where the lender for farmers and small and medium enterprises is based.
Small player
A small player in the country’s financial sector despite sharing a chairman with one of India’s largest conglomerates, Adani Capital is looking to capture more of the Rs 3 lakh to Rs 30 lakh loan market using technology.
“We are not a fintech company, but a lending company that uses technology to more efficiently acquire or underwrite customers,” Gupta said. The lender uses a direct-to-customer distribution model and 90 percent of the business is self-generated, he said.
Gupta joined Adani in 2016 after two decades in banking at firms including Nomura Holdings Inc. and Rothschild & Co., most recently as head of investment banking in India for Macquarie Group Ltd.
The tycoon’s financial arm launched in 2017 and started small, reporting a net income of around Rs 1,630 lakh in the year ended March 31, 2021, according to its annual report 2020-2021. Still, this is a jump from the previous year , when the coronavirus pandemic exacerbated the shadow banking crisis.
The firm has 154 branches in eight states and about 60,000 borrowers, said Gupta, who owns a minority stake in the company. It currently looks after about Rs 3,000 crore of loans, he added, and pegged gross non-performing assets at around 1 per cent. “My plan is to double the loan portfolio every year,” he said.
Published on
July 29, 2022
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