Manappuram Finance Limited has announced that it has received all necessary approvals from the Reserve Bank of India (RBI) for Bain Capital to acquire joint control of the company and its subsidiaries. This strategic investment marks a significant milestone in driving the next phase of growth for Manappuram Finance and its subsidiaries.
The subsidiaries, Asirvad Micro Finance Limited and Manappuram Home Finance Limited, have also received the requisite approvals for an indirect change in control and management due to Bain Capital’s investment. The investment, amounting to approximately ₹4,385 crore, will result in Bain Capital acquiring joint control alongside the existing promoters of Manappuram Finance. This includes a consequent open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
With all statutory approvals in place, Manappuram Finance and Bain Capital aim to complete the capital infusion by March 31, 2026. Bain Capital plans to complete the open offer in accordance with SEBI’s prescribed timelines. Upon completion, Bain Capital will hold between 18.0% and 41.66% of shares on a fully diluted basis, while the existing promoters will retain a 28.9% stake.
Following the transaction and open offer completion, Bain Capital will be classified as a promoter of Manappuram Finance, sharing joint control with the current promoters. The Board of Directors for Manappuram Finance, Asirvad Micro Finance, and Manappuram Home Finance will be reconstituted to include nominee directors from Bain Capital, as outlined in the definitive agreements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).