Bain Capital Acquires 18% Stake in Manappuram Finance for Rs 4,385 Crore

New Delhi, Mar 20 (PTI) Global private investment firm Bain Capital on Thursday said it will acquire an 18 per cent stake in gold loan financier Manappuram Finance for Rs 4,385 crore.

The deal will make it one of the promoters of the company and provide joint control.

As part of the transaction, Bain Capital will be investing Rs 4,385 crore to acquire an 18 per cent stake on a fully diluted basis via preferential allotment of equity and warrants at a price of Rs 236 per share, which is at a premium of about 30 per cent over the 6-month average trading price, a joint statement said.

This strategic investment aims to fuel the company's next phase of growth and drive transformation by enhancing operational excellence, strengthening leadership, and expanding its presence across key segments, it added.

The transaction will trigger a mandatory open offer for the purchase of an additional 26 per cent stake in the company on an expanded capital basis (excluding warrants), it noted.

The open offer price has been fixed at Rs 236 per share. Based on the open offer subscription, Bain Capital's stake post the investment will vary between 18 per cent to 41.7 per cent on a fully diluted basis (including shares to be issued pursuant to exercise of warrants).

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 joint statement said.

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

Founded in 1949, Manappuram Finance is a leading non-banking financial institution, it has grown to serve over 6.59 million customers through an extensive network of 5,357 branches and a workforce of 50,795 employees.

The Kerala-based company has expanded beyond gold loans into microfinance, vehicle finance, housing finance and SME lending, establishing itself as a diversified financial services provider with significant scale and strong growth momentum.

Their leadership team is renowned for its commitment to excellence, and their sharp focus on growth will unlock fresh opportunities for Manappuram Finance, the company's MD and CEO V P Nandakumar said.

"This collaboration leverages our deep expertise and commitment to sustainably expanding India's financial services sector while democratising access to financial products that foster entrepreneurship and wealth creation across the country," said Pavninder Singh, Partner at Bain Capital.

Bain Capital has deep experience in investing to support the growth and leadership of a diversified set of financial services businesses in India and globally, including Axis Bank, 360One Wealth & Asset Management, L&T Finance Holdings, and Lionbridge Capital, among others.