Bain Capital to Acquire Joint Control and Invest in Manappuram Finance

Bain Capital, a leading global private investment firm announced that it has entered into definitive agreements to acquire joint control in Manappuram Finance, a Kerala-based non-banking financial company and the 2nd largest gold financier in India through its affiliates i.e., BC Asia Investments XXV Limited and BC Asia Investments XIV Limited (Bain Capital) in partnership with the Existing Promoters who will continue to stay fully invested.

As part of the transaction, Bain Capital will be investing ~INR 4,385 cr in acquiring an 18.0% stake on a fully diluted basis via preferential allotment of equity & warrants for INR 236 per share which is at a premium of ~30% over the 6-month average trading price. The transaction will trigger a mandatory open offer to purchase an additional 26.0% stake in the company on an expanded capital basis (excluding warrants).

The open offer price has been fixed at INR 236 per share. Based on the open offer subscription, Bain Capital’s stake post the investment will vary between 18.0% to 41.7% on a fully diluted basis (including shares to be issued under the 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 under the exercise of warrants).

Mr. V.P. Nandakumar, MD & CEO at Manappuram Finance, said, “The journey of Manappuram Finance has been a long and rewarding one, delivering rich dividends to all stakeholders and investors. For me personally, it has been a privilege to lead such a dynamic company that continues to set gold standards in the NBFC sector. 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. We look forward to a successful partnership that drives innovation and sustained success”

Pavninder Singh, Partner at Bain Capital Said, “We are thrilled to partner with Mr. Nandakumar and his team to support Manappuram Finance in its next phase of growth. This collaboration leverages our deep expertise and commitment to sustainably expanding India’s financial services sector while democratizing access to financial products that foster entrepreneurship and wealth creation across the country”