The American investment firm Bain Capital said on Sunday that it has reached an agreement to buy out the entire private stake held by the Adani family in the business by acquiring 90% of Adani Capital and Adani Housing.

According to Bain, Gaurav Gupta will keep his 10% ownership in Adani Capital and continue to lead the company as managing director and CEO.

The Adani Group’s non-banking financial arm, Adani Capital, began operating as a lender in 2017. Bain has pledged $120 million for the arm and an extra $50 million in non-convertible debt as a line of credit for liquidity.

The billionaire Gautam Adani-owned company has been under pressure since U.S. short seller Hindenburg Research accused it of unethical business practises, which caused a more than $150 billion decline in the value of the group’s main equities. Hence, Bain’s interest in the company.

Adani Capital will be positioned as an independent entity through the transaction, which is anticipated to finalise in the fourth quarter of this year, in order to increase lending, according to Bain.

“I am very happy that a credible investor like Bain is stepping in now and this will help the business grow manyfold from here,” said Gautam Adani, chairman of the Adani group.

The investment by Bain comes after other international investments by firms like GQG, which in May increased its ownership share in Gautam Adani’s group by roughly 10%.

“With Bain committing 1,000 Crore rupees of capital in the company, we are now equipped to grow 4x from here,” Gupta said in a statement.

Since the early-year stock crash brought on by the Hindenburg, the Adani group’s shares have increased by about $50 billion as a result of Gautam Adani’s assurances to investors and repayment of debt.

(Adapted from LiveMint.com)

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