Kerala-based gold loan company Manappuram Finance is bringing in Bain Capital as a key investor. On March 21, the global private investment firm announced that it has entered into definitive agreements to acquire joint control in Manappuram through an investment of approximately ₹4,385 crore.
The deal will be executed via Bain’s affiliates — BC Asia Investments XXV Limited and BC Asia Investments XIV Limited — in partnership with the company’s existing promoters, who will continue to stay fully invested.
The investment involves a preferential allotment of equity shares and warrants at ₹236 per share. This price is nearly 30% higher than Manappuram’s six-month average trading price and around 9% above its current market value. Through this route, Bain will acquire an 18% stake in the company on a fully diluted basis.
In line with Indian regulations, the transaction will also trigger a mandatory open offer for the purchase of an additional 26% stake. If the open offer sees full subscription, Bain’s total stake could rise to 41.7% (including shares from the exercise of warrants).
Following the announcement, Manappuram Finance shares opened stronger on March 21 and were trading 4% higher in early hours, touching ₹226.26. With this jump, the stock is now approaching its 52-week high of ₹230.25, last recorded on July 19, 2024. At the current market price, Manappuram Finance has a market capitalisation of ₹19,214 crore.
Even after the deal, the existing promoters of Manappuram will retain a 28.9% stake in the company on a fully diluted basis. This suggests a shared control structure going forward, with both Bain and the promoters having meaningful influence.
The company stated that this strategic investment is expected to support its next phase of growth. The plan includes strengthening operations, expanding presence across key segments, and enhancing leadership capabilities.
“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.”
V.P. Nandakumar, managing director and CEO of Manappuram Finance
Founded in 1949, Manappuram Finance is India’s second-largest gold loan company. It currently serves around 6.59 million customers and operates 5,357 branches across the country, employing a workforce of 50,795.
