Bain Capital plans ₹4,385 crore investment in Manappuram Finance

Bain Capital has announced plans to acquire an 18% stake in Manappuram Finance for ₹4,385 crore, marking a significant investment in the Kerala-based non-banking financial company, India's second-largest gold loan provider. The acquisition will be executed through a preferential allotment of shares at ₹236 per share, a 30% premium over the company's average trading price, and will trigger a mandatory open offer for an additional 26% stake. Following the deal, Bain Capital will gain joint control of the company, including the right to appoint a board member, enhancing governance and operational efficiency. Manappuram Finance aims to leverage Bain's expertise to expand its offerings in gold loans, microfinance, vehicle finance, and SME lending. The existing promoters will retain a 28.9% stake post-transaction, ensuring their continued involvement in the company's strategic direction. This partnership is expected to catalyze growth and enhance financial services in India.