Bain Capital is the front-runner to take a majority stake in Adani Capital in a deal valued at around Rs 1,500 crore, Financial Express (FE) has reported. The deal is likely to be announced soon.
Private equity firms like Carlyle Group and Cerberus Capital Management are also in the race. The development is a result of Adani group's head Gautam Adani's decision to exit from non-core businesses and use this capital for his core ventures, people in the know told the newspaper.
Adani Enterprises is on the lookout to raise capital to expand its various business verticals. In a recent development, a consortium of banks led by the State Bank of India (SBI) agreed to finance Adani's PVC project at Mundra Port.
With credit support from SBI, the PVC project is set to achieve financial closure by the middle of August. The funding for the first phase of the project will be taken by the public sector banks which will pick up the bulk of the tab of around Rs 14,500 crore. The remaining amount will be financed by private lenders, a Hindu Businessline report said.
In a recent announcement, Adani group's chairman said that the group is confident in expanding its business plans after the Supreme Court constituted panel had cleared it of the false allegations made in the Hindenburg report. The report, which was released in January this year had resulted in a major blow to the share prices of the Groups's companies.
In addition to that, the report also derailed Adani Enterprises' follow-on public offer as the group decided to pay back all the money even after its FPO was fully subscribed. The company had said that it was returning the investors' money to save them from financial volatility.