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Manappuram Finance soars as Bain Capital to take joint control

21-Mar-25   14:19 Hrs IST
Bain Capital has entered into definitive agreements to acquire joint control in Manappuram Finance, through its affiliates i.e., BC Asia Investments XXV and BC Asia Investments XIV (Bain Capital) in partnership with the existing promoters who will continue to stay fully invested.

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.

As part of the transaction, Bain Capital will be investing about Rs 4,385 crore to acquire an 18% stake on a fully diluted basis via preferential allotment of equity & warrants at a price of Rs 236 per share.

The transaction will trigger a mandatory open offer for the purchase of another 26% stake in the company on an expanded capital basis (excluding warrants). 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% to 41.7% on a fully diluted basis (including shares to be issued pursuant to exercise of warrants). Existing Promoters will hold a 28.9% stake in the company post the investment on a fully diluted basis (including shares to be issued pursuant to exercise of warrants).

Transaction is expected to close by Q2-Q3 of next fiscal subject to receipt of necessary approvals. Bain Capital will be classified as promoter of company post investment and will jointly control company with existing promoters.

Founded in 1949, Manappuram Finance is a leading non-banking financial institution and the 2nd largest financier in the gold loan segment in India. 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. It has expanded beyond gold loans into microfinance, vehicle finance, housing finance and SME lending, establishing itself as a diversified financial services provider.

On a consolidated basis, Manappuram Finance's net profit fell 50.76% to Rs 282.06 crore on 10.14% increase in total income to Rs 2,562.63 crore in Q3 December 2024 over Q3 December 2023.

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