Manappuram Finance Shares in Focus: Bain Capital to Acquire Stake for ₹4,385 Crore Investment

Bain Capital, a global private investment firm, has signed definitive agreements to acquire joint control in Kerala-based non-banking financial company (NBFC) Manappuram Finance. This investment, made through its affiliates BC Asia Investments XXV Ltd. and BC Asia Investments XIV Ltd., will see existing promoters retaining their stake in the company.

Bain Capital’s Investment and Open Offer

As part of the agreement, Bain Capital will invest ₹4,385 crore to acquire an 18% stake in Manappuram Finance on a fully diluted basis. The purchase will be executed through a preferential allotment of equity and warrants at ₹236 per share, reflecting a 30% premium over the six-month average trading price.

The transaction will also trigger a mandatory open offer for an additional 26% stake at the same price of ₹236 per share. Depending on the response to the open offer, Bain Capital’s total stake in the company could range between 18% and 41.7% on a fully diluted basis, including shares issued upon warrant conversion.

Impact on Shareholding and Business Outlook

Following the investment, the existing promoters will hold a 28.9% stake in Manappuram Finance on a fully diluted basis. The company, recognised as India’s second-largest gold loan provider, sees this partnership as a catalyst for its next growth phase.

V.P. Nandakumar, MD and CEO of Manappuram Finance, expressed confidence in Bain Capital’s strategic support, highlighting, “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.”

Manappuram Finance Share Performance 

As of March 21, 2025, at 2:05 PM, Manappuram Finance share price is trading at ₹235.90 per share, reflecting a surge of 8.46% from the previous day’s closing price. Over the past month, the stock has surged by 17.18%.

Conclusion

With Bain Capital’s substantial investment and strategic backing, Manappuram Finance is poised for further growth in the gold loan and financial services market. The partnership is expected to enhance the company’s reach and accelerate its expansion plans.

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