Manappuram Finance Stock Surges 8% on Bain Capital Offer

New Delhi, Mar 21 (PTI) Shares of Manappuram Finance jumped nearly 8 per cent on Friday after the US-based private investment firm Bain Capital launched Rs 5,764-crore open offer to acquire an additional 26 per cent stake in the gold loan financier.

The stock climbed 7.70 per cent to settle at Rs 234.25 on the BSE. During the day, it zoomed 13.81 per cent to Rs 247.55 -- its 52-week high.

At the NSE, shares of the firm jumped 7.77 per cent to Rs 234.40.

In traded volume terms, 62.64 lakh shares of the firm were traded at the BSE and 1,463.61 lakh shares on the NSE during the day.

The open offer was triggered following Bain Capital's decision on Thursday to acquire an 18 per cent stake in Manappuram Finance for a consideration of Rs 4,385 crore.

The open offer price has been fixed at Rs 236 per share. Based on the open offer subscription, Bain Capital's stake after the investment will vary between 18 per cent and 41.7 per cent on a fully diluted basis.

As per the term sheet by the offer manager Kotak Mahindra Capital, up to 24,42,27,387 fully paid up equity shares of face value of Rs 2 each of the Manappuram Finance constituting 26 per cent of the expanded voting share capital at a price of Rs 236 per share for a total consideration of up to Rs 5,763.76 crore.

Existing promoters will hold a 28.9 per cent stake in the company post the investment on a fully diluted basis, including shares to be issued pursuant to the exercise of warrants.

The transaction is subject to customary closing conditions and regulatory approvals.