Manappuram Finance Seals ₹4,385 Crore Deal with Bain Capital for 18% Stake

Manappuram Finance Limited has announced an investment deal with Bain Capital Asia, in which Bain will acquire an 18% stake for ₹4,385 crore.

Under this deal, Bain Capital, through its investment arm BC Asia Investments XXV Limited, will purchase 9.29 crore equity shares at ₹236 per share. Additionally, BC Asia Investments XIV Limited will receive an equal number of warrants, which can be converted into shares over the next 18 months. This means Bain Capital could gradually increase its stake as and when it chooses.

Once the deal is finalized and necessary regulatory approvals are secured, Bain Capital will be classified as a joint promoter of Manappuram Finance, alongside the company’s current promoters, V.P. Nandakumar and Sushama Nandakumar. Furthermore, Bain Capital will gain a key seat on the company's board, giving it a say in the NBFC's strategic decisions.

The transaction also triggers a mandatory open offer, allowing Bain Capital to buy an additional 26% stake in the company. If this offer is fully subscribed, Bain Capital's total stake could exceed 40%, making it a dominant player in the company’s ownership structure. Meanwhile, the existing promoters will continue to hold a 28.9% stake.

In a parallel move, Manappuram Finance’s board has approved an agreement between the company, V.P. Nandakumar, and Manappuram Asset Finance Limited (MAFL). Under this agreement, Manappuram Finance will acquire a 99.917% stake in MAFL.

As the next step, Manappuram Finance has scheduled an Extraordinary General Meeting on April 16, 2025, where shareholders will vote on the preferential allotment of shares to Bain Capital and related amendments to its Articles of Association. With regulatory approvals from the RBI and the Competition Commission of India still pending, the deal is expected to unfold over the next few months.