After FMCG subsidiary Adani Wilmar, a non-bank lender backed by Gautam Adani, Asia’s richest person, is planning to raise at least Rs 1,500 crore ($188 million) in an initial public offering in Mumbai that could take place as early as 2024. Adani Capital’s first-time share sale will offer about a 10 per cent stake in the shadow bank and target a valuation of around $2 billion, Managing Director and Chief Executive Officer Gaurav Gupta said.
In an interview with Bloomberg, the CEO said that “If you are listed then your ability to raise incremental capital is higher.”
Adani Capital aims to capture more of the market for loans from Rs 300,000 to Rs 3 million using technology. Gupta said that they are a fintech company, but a credit company which is leveraging technology to acquire or underwrite customers more effectively.
Adani Capital uses a direct-to-customer distribution model and 90 per cent of the business is self-generated, the CEO added.
Further, Gupta said told Bloomberg, the firm has 154 branches in eight states and about 60,000 borrowers. Also, it looks after about 30 billion rupees of loans, he added, and pegged the gross non-performing assets at about 1%.
“My plan is to double the loan book every year,” Gupta who owns a minority stake in the company said.
Adani Capital heralds Adani Group’s entry into financial services. The company commenced lending operations in April 2017 and since then its business categorized into retail and rural financing. It provides lending services in the Agri value chain such as farm equipment, small commercial vehicles, 3-wheelers, and farm loans. Further, the company also offers MSME business loans and trade and supply chain financing.
Currently, the company is expanding its branch network in the states of Gujarat, Maharashtra, Rajasthan & Madhya Pradesh.
Earlier this week, Adani Group’s combined market capitalisation has breached $200 billion this year, Gautam Adani, the chairman of the business conglomerate said.
The group made its entries in several sectors from data center, digital super apps and industrial clouds, to defence and aerospace, metals and materials – -aligned with the government’s vision of Atmanirbhar Bharat, he said.
Addressing the annual general meeting of the Adani Group, Gautam Adani highlighted the business’ achievements so far. “We have become the largest airport operator in the country in last year. The successful Adani Wilmar IPO has helped in making the company the largest FMCG company in the country,” he said.
“Our combined Group market capitalisation this year exceeded US$ 200 billion. We were able to raise billions of dollars from the international markets – a direct validation of confidence in the India and Adani growth story,” he said. the Adani Group chairman also said that several foreign governments were now approaching them to work in their geographies and help build their infrastructure. “Therefore, in 2022, we also laid the foundation to seek a broader expansion beyond India’s boundaries,” he said.
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