New Delhi: Gautam Adani, the richest man in Asia, is preparing to undertake an initial public offering (IPO) of his non-bank lender Adani Capital after his FMCG company Adani Wilmar. Through the offering, the NBFC hopes to raise about Rs. 1,500 crore ($188 million). The IPO is likely to launch in the early part of 2024.
As reported by Bloomberg, Adani Capital’s first-ever share will offer approximately a 10% interest in the shadow bank and aim for a valuation of around $2 billion. Managing Director and Chief Executive Officer, Gaurav Gupta, said.
In an interview in Mumbai, the CEO said, “If you are listed, then your opportunity to attract extra cash is higher.”
Notably, Adani Capital wants to use technology to increase its share of the market for loans between 300,000 and 3,000,000 rupees. Gupta said they are a credit organisation using technology to better acquire or underwrite consumers, rather than a fintech company.
The company has a direct-to-customer distribution approach, and 90% of the company’s revenue is self-generated, the CEO added.
After working for 20 years in the banking industry at companies including Nomura Holdings Inc. and Rothschild & Co., Gupta joined Adani in 2016. Most recently, he was the head of India investment banking at Macquarie Group Ltd.
The financial division of the Indian business tycoon was established in 2017 and made a modest start, generating a net income of roughly 163 million rupees for the fiscal year that concluded on March 31, 2021, according to its annual report for 2020–2021. Even so, it represents an improvement over the previous year, when the country’s shadow banking issues were made worse by the coronavirus outbreak.
The firm has 154 branches in eight states and about 60,000 borrowers, said Gupta.