CORPORATE
Bain Capital to acquire 18% stake in Manappuram Finance for Rs 4,385 crore
- IBJ Bureau
- Mar 21, 2025
Manappuram Finance on Thursday said that Bain Capital would invest Rs 4,385 crore to acquire an 18 per cent stake in the gold loan provider. The deal comes at a time when record prices of the precious metal have made its mortgaging appealing.
The asset manager will subscribe to Manappuram’s shares and warrants at Rs 236 apiece, implying a 30 per cent premium over its six-month average trading price.
Bain Capital will be classified as a promoter of the company post-investment and will jointly control it with existing promoters.
Households in India, the world’s second-biggest gold consumer, typically buy bullion during festivals and weddings. Record prices make gold loans more attractive.
The Indian gold loan market is expected to reach around Rs 14.19 lakh crore by FY29 at a five-year compounded annual growth rate of 14.85 per cent, according to PwC.
The deal, expected to close by the second or third quarter of the next financial year, will trigger a mandatory open offer for the purchase of an additional 26 per cent stake from existing shareholders at the same price, Manappuram Finance has said.
Based on open-offer subscription, Bain Capital’s stake post-investment will vary between 18 and 41.7 per cent. Manappuram’s promoters, which include its Managing Director and Chief Executive V P Nandakumar, will hold a 28.9 per cent stake in the company.
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