Gautam Adani group company plans IPO soon, seeks to raise ₹1500 crs

A NBFC backed by Asia’s richest man, Gautam Adani, plans to raise funds of approximately 15 billion rupees ($188 million) in an IPO in Mumbai. Adani Capital’s initial share sale will offer about 10% of the shadow bank’s stake. and will target a valuation of around $2 billion.

“If you are on the list, your ability to raise more capital will be higher,” Gupta said in an interview in Mumbai, where the headquarters of the lenders to farmers and SMEs is. 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 a larger share in the lending market with Rs 300,000 to 3 million Rs using technology.

“We are not a fintech company, but a credit company that leveraging technology to acquire or underwrite customers more effectively,” Gupta said. Lenders use a D2C model, and 90% of the business is self-generated, he added. Gupta joined Adani in 2016 after two decades as a banker at companies including Nomura Holdings Inc. and Rothschild & Co., most recently Director of Indian Investment Banking of Macquarie Group Ltd.

The company was established back in 2017 and got off to a modest start, recording a net profit of around Rs 163 million in the financial year ending on March 31, 2021, according to the report. annual report 2020-2021. It’s still a huge leap from the previous year when the corona exacerbated the country’s shadow banking crisis.

The company has 154 branches in eight states and about 60,000 borrowers, said Gupta, who holds a small stake in the company. He added that the company is currently managing about Rs 30 billion in loans and has a stable total non-performing assets of around 1%. “My plan is to double my loan book every year,” he said.