Bain Capital is reportedly in discussions to acquire a controlling stake in Manappuram Finance, showing strong interest in India’s gold loan sector, according to The Economic Times.
Sources familiar with the matter indicate that the founding family of the Kerala-based non-banking financial company, a leader in gold loans, is reconsidering plans for a partial or full exit.
Manappuram Finance, along with others in the gold loan industry, has been facing regulatory challenges and declining valuations. Efforts to diversify beyond gold loans have yielded mixed results, adding to the company’s near-term obstacles.
VP Nandakumar, Managing Director and CEO of Manappuram Finance, who, along with his family, holds a 35.25% stake as part of the promoter group, has denied any intentions to divest. However, the discussions with Bain Capital indicate potential changes on the horizon for the company, pending final decisions from the promoter group.
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