Kerala-based NBFC Manappuram Finance has secured regulatory clearance from the Reserve Bank of India for US private equity major Bain Capital to acquire joint control of the company and its subsidiaries, marking a key step in one of the sector’s largest recent deals.
The approval paves the way for Bain Capital’s planned investment of about ₹4,385 crore and its entry as a co-promoter alongside existing promoters.
As part of the deal, Bain Capital will acquire up to 41.66 percent stake in Manappuram Finance. Following the transaction and completion of the open offer, the investor will be classified as a promoter and will jointly control the company.
On a fully diluted basis, Bain Capital is expected to hold between 18 percent and 41.66 percent, while existing promoters will retain around 28.9 percent stake.
Post-acquisition, key subsidiaries — Asirvad Micro Finance Limited and Manappuram Home Finance Limited — will also come under the joint control of Bain Capital and the current promoters.
The company said it has now received all required statutory approvals for the transaction, including regulatory clearance for the open offer under Securities and Exchange Board of India norms.
Manappuram Finance and Bain Capital aim to complete the capital infusion by March 31 while the open offer will proceed as per SEBI timelines.
Following the completion of the deal, the boards of Manappuram Finance and its subsidiaries will be reconstituted to include Bain Capital’s nominee directors, in line with the investment agreement.
Bain Capital had first announced its plan to pick up a stake in Manappuram Finance through its affiliates last year, subject to regulatory approvals.
