The Reserve Bank of India has approved Bain Capital to acquire joint control in Manappuram Finance, paving the way for a Rs 4,385 crore investment that could see the global private equity firm hold up to 41.7 per cent stake in the non-banking financial company (NBFC).
As part of the transaction structure, Bain Capital will initially acquire an 18 per cent stake on a fully diluted basis through a preferential allotment of equity shares and warrants priced at Rs 236 per share. In line with regulatory requirements under SEBI’s takeover norms, the deal also triggers a mandatory open offer to public shareholders for up to an additional 26 per cent stake at the same price. Depending on the level of participation in the open offer, Bain’s total shareholding could increase to approximately 41.7 per cent.
Following the RBI’s clearance, Bain Capital will be classified as a promoter and will share joint control of Manappuram Finance alongside the existing promoter group. The company’s board is expected to be reconstituted to include Bain’s nominees, reflecting the new governance framework and strengthening institutional oversight.
The investment marks one of the largest private equity transactions in India’s NBFC sector in recent times. For Manappuram Finance, the capital infusion is expected to reinforce its balance sheet, enhance capital adequacy, and support its long-term growth strategy. The company, known primarily for its gold loan business, has also diversified into microfinance, vehicle finance, and other retail lending segments.
With the fresh capital and strategic backing from a global investor, Manappuram is likely to accelerate investments in technology, risk management systems, and operational efficiencies. The partnership is also seen as a vote of confidence in the company’s governance standards and business fundamentals at a time when regulatory oversight in the NBFC sector remains stringent.
Overall, the RBI’s approval formalizes a significant shift in Manappuram’s ownership structure and sets the stage for the next phase of growth under a joint promoter model combining domestic expertise with global institutional capital.
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