Global private investment firm Bain Capital has entered into definitive agreements to acquire joint control in Kerala-based non-banking financial company (NBFC) Manappuram Finance, the second-largest gold financier in India.
The investment, made through Bain Capital affiliates BC Asia Investments XXV Limited and BC Asia Investments XIV Limited, will be in collaboration with the existing promoters, who will retain their full investment in the company.
Under the agreement, Bain Capital will invest about Rs 4,385 crore to buy an 18 per cent stake in Manappuram Finance. This will be done by issuing new shares and warrants at Rs 236 per share, which is 30 per cent higher than the average trading price over the past six months, the company said in an exchange filing on Thursday.
Additionally, the deal will trigger a mandatory open offer for a further 26 per cent stake at the same price, potentially increasing Bain Capital’s shareholding to as much as 41.7 per cent on a fully diluted basis, subject to the open offer’s subscription. The existing promoters will hold a 28.9 per cent stake post-investment, including shares obtained from exercised warrants.
Also Read:Manappuram Finance board to evaluate fundraising options via equity, debt today
The transaction, aimed at strengthening Manappuram Finance’s operational capabilities, leadership, and market presence, is subject to customary regulatory approvals and closing conditions.
Strategic growth and expansion
Manappuram Finance, established in 1949, has grown into a diversified financial services provider with a customer base of over 6.59 million, operating through 5,357 branches and employing nearly 50,800 people. The company has expanded beyond gold loans into microfinance, vehicle finance, housing finance, and SME lending.
Commenting on the investment, VP Nandakumar, MD & CEO of Manappuram Finance, said, “As we embark on the next phase of our growth, we are delighted to welcome Bain Capital as our new partner. Their leadership team is renowned for its commitment to excellence, and their sharp focus on growth will unlock fresh opportunities for Manappuram Finance.”
Bain Capital Partner Pavninder Singh stated, This collaboration leverages our deep expertise and commitment to sustainably expanding India’s financial services sector, while democratizing access to financial products that foster entrepreneurship and wealth creation across the country.”
Bain Capital has a strong track record of investments in India’s financial sector, having previously backed firms such as Axis Bank, 360One Wealth & Asset Management, and L&T Finance Holdings.
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