Adani Properties

Adani Capital to launch IPO by 2024

NBFC (Non-banking financial company) arm of Adani Group, Adani Capital, is planning to list itself on the Bombay Stock Exchange through an IPO which could happen by 2024.

The announcement was made by Gaurav Gupta, who is Managing Director and Chief Executive Officer of the credit company.

Adani Capital which commenced its operations in 2017, under the leadership of Gautam Adani, currently has more than 30000 customers in India managing their finances through 60+ branches of the NBFC Company.

Gaurav Gupta said that the company is planning to raise nearly 188 million dollars through a first-time-share sale of about a 10% stake in the NBFC. In the initial public offering, which is expected to happen as early as 2024, the Adani-backed company is targetting a valuation of around 2 billion dollars.

According to the CEO, the company is planning to target the loan market for medium credits from 3 lakh rupees to 30 lakh Indian rupees. The lending company, which is currently focusing on meeting the credit requirements of farmers and MSME businesses, is planning to increase its business footprint using capital raised through the IPO. The company has so far disbursed nearly 1000 crore rupees worth of loans for various activities and businesses including rural development, agriculture value chain, and large-scale infrastructure projects.

Gaurav Gupta is of the opinion that listing in a stock exchange index would increase the company’s ability to raise incremental capital. He also clarified doubts regarding whether Adani Capital was a fintech company or not. He said that the company is not a fintech, but uses the advantageous features of technology to acquire and underwrite credit needs and requirements of their customers effectively and efficiently.

With a credit rating of CRISIL A1+, the credit company backed by Adani follows a direct-to-customer distribution model. It is also important to note that big majority of the business of the NBFC company is self-generated.

Financial statements of the Adani Capitals for the year ended March 31, 2021, suggest that the company has a net income of 163 million Indian rupees. Even though the credit entity is currently holding only a small portion of the entire credit business in India, the company plans to double its loan book every year and hence increase its business.

About Gaurav Gupta –

Gaurav Gupta, who has over 20 years of experience in the banking and finance sector, joined Adani group in 2016 with an aim of coming up with a financial service business of the multinational conglomerate.

Before joining Adani, he was head of Indian arm of Macquarie Capital and has also worked as Chartered Accountant at various international firms such as Nomura, Lehman and Rothschild to name a few.