Mumbai: A non-bank lender backed by Gautam Adani, Asia’s richest person, is planning to raise at least Rs15 billion ($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 CEO Gaurav Gupta said.
“If you are listed then your ability to raise incremental capital is higher,” Gupta said in an interview in Mumbai, where the lender to farmers and small and medium-sized businesses is based.
A small player in the country’s finance sector despite sharing a chairman with one of India’s biggest conglomerates, Adani Capital is looking to capture more of the market for loans from Rs30,000 to Rs3 million using technology.
“We are not a fintech company, but a credit company which is leveraging technology to acquire or underwrite customers more effectively,” said Gupta. The lender uses a direct-to-customer distribution model and 90 per cent of the business is self-generated, he said.
Gupta joined up with Adani in 2016 after two decades in banking at firms including Nomura Holdings and Rothschild & Co., most recently serving as Macquarie Group Ltd.’s head of India investment banking.
The Indian tycoon’s financial unit launched in 2017 and has started small, reporting net income of about Rs63 million in the year ended March 31, 2021, according to its 2020-2021 annual report. That’s still a jump from the previous year, when the coronavirus pandemic exacerbated the country’s shadow banking crisis.
The firm has 154 branches in eight states and about 60,000 borrowers, Gupta said. It currently looks after about Rs30 billion of loans, he added, and pegged the gross non-performing assets at about 1 per cent. “My plan is to double the loan book every year,” he said.