Shares of Manappuram Finance will be in focus after the company’s board approved a ₹4,384 crore preferential issue, with Bain Capital set to acquire an 18% stake at ₹236 per share. The deal will also trigger a mandatory open offer for an additional 26% stake, potentially increasing Bain Capital’s total holding in Manappuram Finance to 41.7%.
As part of the broader restructuring, Manappuram Finance’s subsidiary Asirvad Micro Finance Limited (AMFL) has decided to withdraw its Draft Red Herring Prospectus (DRHP) filed with SEBI for an initial public offering (IPO). AMFL’s board approved the withdrawal on March 20, 2025, citing strategic realignment following Bain Capital’s investment. The company will now submit the necessary application to SEBI and stock exchanges for formal withdrawal approval.
Bain Capital’s investment, made through BC Asia Investments XXV Limited and BC Asia Investments XIV Limited, is aimed at strengthening Manappuram Finance’s financial services platform, with a focus on gold loans, microfinance, SME lending, and vehicle finance. The transaction remains subject to regulatory approvals, including those from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
