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

ICICIdirect Research 21 Mar 2025 DISCLAIMER

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).

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