Bain Capital Acquires Joint Control in Manappuram Finance with INR 4,385 Cr Investment As part of the deal, Bain Capital will acquire an 18.0% stake in Manappuram Finance on a fully diluted basis through a preferential allotment of equity and warrants at INR 236 per share—a 30% premium over the six-month average trading price.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Bain Capital, the global private investment firm, has announced its entry into a definitive agreement to acquire joint control of Kerala-based non-banking financial company (NBFC) Manappuram Finance.
The acquisition will be executed through Bain Capital's affiliates—BC Asia Investments XXV Limited and BC Asia Investments XIV Limited—in partnership with the company's existing promoters, who will remain fully invested.
The strategic investment, amounting to INR 4,385 crore, will help accelerate Manappuram Finance's next phase of growth. Bain Capital aims to strengthen the company's leadership, enhance operational excellence, and expand its presence across key financial segments.
As part of the deal, Bain Capital will acquire an 18.0% stake in Manappuram Finance on a fully diluted basis through a preferential allotment of equity and warrants at INR 236 per share—a 30% premium over the six-month average trading price. The transaction triggers a mandatory open offer for an additional 26.0% stake in the company. Depending on open offer subscriptions, Bain Capital's total stake in Manappuram Finance could range between 18.0% and 41.7%. Post-transaction, the existing promoters will retain a 28.9% stake in the company. The deal is subject to regulatory approvals and customary closing conditions.
"We are thrilled to partner with Mr Nandakumar and his team to support Manappuram Finance in its next phase of growth," said Pavninder Singh, Partner at Bain Capital. "This collaboration underscores our commitment to strengthening India's financial services sector and broadening access to financial products that drive entrepreneurship and wealth creation."
Founded in 1949, Manappuram Finance has grown into one of India's leading NBFCs, specialising in gold loans while diversifying into microfinance, vehicle finance, housing finance, and SME lending. With a network of 5,357 branches across 28 states and union territories, the company serves over 6.59 million customers and has assets under management (AUM) of INR 44,218 crore.
Commenting on the deal, VP Nandakumar, MD and CEO of Manappuram Finance, stated, "Manappuram Finance has consistently delivered value to stakeholders, and this new partnership with Bain Capital will propel us into the next phase of growth. Bain Capital's expertise and capital infusion will help us drive innovation, enhance operational efficiency, and unlock new opportunities."
Bain Capital has extensive experience in India's financial services sector, with past investments in Axis Bank, L&T Finance Holdings, and 360One Wealth & Asset Management.
The firm was advised by Kotak Investment Banking, Boston Consulting Group, and legal advisors, while Manappuram Finance and its promoters were advised by Spark Capital and Khaitan & Co.
