Bain Capital, a leading global private investment firm, has announced plans to acquire joint control in Manappuram Finance and make an open offer to acquire an additional 26% stake in the company. The investment is aimed at fueling the next phase of growth for the Kerala-based non-banking financial company (NBFC), the second-largest gold loan provider in India.
As part of the agreement, Bain Capital will invest ₹4,385 crore to acquire an 18% stake on a fully diluted basis via a preferential allotment of equity and warrants at a price of ₹236 per share. This represents a 30% premium over the company’s six-month average trading price. The deal will trigger a mandatory open offer for the acquisition of an additional 26% stake, excluding warrants. The open offer price has been set at ₹236 per share, and depending on the subscription outcome, Bain Capital’s stake could rise between 18% and 41.7%.
Manappuram Finance, founded in 1949, has established itself as a major player in India’s gold loan segment, serving over 6.59 million customers through an extensive network of 5,357 branches and a workforce of over 50,795 employees. While gold loans remain a core business, the company has diversified into microfinance, vehicle finance, housing finance, and SME lending, positioning itself as a full-spectrum financial services provider.
Speaking on the transaction, Mr. V.P. Nandakumar, MD & CEO of Manappuram Finance, said, “The journey of Manappuram Finance has been long and rewarding, delivering rich dividends to all stakeholders. Bain Capital’s expertise and leadership in financial services will help us unlock fresh opportunities for growth and excellence.”
Pavinder Singh, Partner at Bain Capital, highlighted the firm’s commitment to expanding India’s financial services sector and democratizing access to financial products. He noted that Bain Capital’s strategic resources and expertise would support Manappuram’s operational excellence and expansion efforts.
