A non-bank lender, backed by Asia’s richest man Gautam Adani, is planning to raise at least Rs 1,500 crore ($188 million) in an initial public offering in Mumbai that could take place in early 2024.
Managing Director and Chief Executive Officer Gaurav Gupta said that Adani Capital’s first-time share sale will offer around 10% stake in Shadow Bank and target a valuation of around $2 billion.
“Your ability to raise incremental capital is higher if you are listed, where farmers and lenders to small and medium-sized businesses are based,” Gupta said in an interview in Mumbai.
A small player in the country’s finance sector despite sharing a chairmanship with one of India’s largest conglomerates, Adani Capital to capture more market for loans ranging from Rs 3,00,000 to Rs 30,00,000 using technology wants.
“We are not a fintech company, but a credit company that is leveraging technology to more effectively acquire or underwrite customers,” Gupta said. The lender uses a direct-to-customer delivery model and 90% of the business is self-generated, he said.
Nomura Holdings Inc. And after two decades in banking at firms including Rothschild & Company, Gupta joined Adani in 2016, most recently serving as Macquarie Group Ltd’s head of India investment banking.
The financial arm of the Indian tycoon launched in 2017 and is reporting a net income of around Rs 163 million for the year ended March 31, 2021, as per its 2020-2021 Annual Report. This is still a jump from last year, when the coronavirus pandemic exacerbated the country’s shadow banking crisis.
Gupta, who holds a minority stake in the company, said the firm has 154 branches in eight states and about 60,000 borrowers. He said it currently looks after loans of around Rs 3,000 crore, and the gross non-performing assets are pegged at around 1%. “I plan to double the loan book every year.