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Manappuram Finance has announced a significant strategic deal with Bain Capital Asia


Manappuram Finance has announced a significant strategic deal with Bain Capital Asia, signalling a major shift in ownership and future direction. As part of the transaction, Bain Capital will invest ₹4,385 crore, through a preferential allotment of equity shares and warrants at ₹236 per share, which is a 30% premium to the weighted average price. Post this transaction, Bain Capital will hold 18% stake in Manappuram Finance (on diluted basis) as a joint promoter.
This deal will trigger an open offer for an additional 26% stake, owing to change in control, wherein the price is fixed at ₹236 per share. Assuming subscription of the open offer, Bain’s stake is estimated at 41.7%. Existing promoters’ shareholding will reduce to 28.9%, implying a shift towards more institutional ownership.
Nandakumar, existing MD & promoter, will be elevated as Non-executive Chairman. Board will be reconstituted including 2 nominee directors of Bain Capital.
Such strategic partnership remains step towards next leg of growth with transformation in control, leadership and business. Capital infusion by Bain is seen to strengthen balance sheet making it ready for future growth, while rising gold price (amid heightened market volatility & increased investor demand for safe-haven) acts as tailwind (enhances business growth despite LTV (Loan to Value) remaining stable).
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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