Manappuram Finance surged 9.77% to Rs 238.75 after global private investment firm Bain Capital announced it would acquire joint control of the Kerala-based non-banking financial company.

Bain Capital has entered into definitive agreements to acquire joint control of Manappuram Finance, partnering with the company’s existing promoters, who will remain fully invested. Through its affiliates BC Asia Investments XXV and BC Asia Investments XIV, Bain Capital will invest approximately Rs 4,385 crore to acquire an 18% stake in the Kerala-based non-banking financial company via preferential allotment of equity and warrants at Rs 236 per share. The deal will trigger a mandatory open offer to purchase an additional 26% stake, bringing Bain Capital’s stake to between 18% and 41.7% on a fully diluted basis, depending on open offer subscription. The existing promoters will hold 28.9% post-investment.

This strategic investment is set to drive Manappuram Finance’s next phase of growth by enhancing operational efficiency, strengthening leadership, and expanding its reach across key segments. The transaction, expected to close by Q2-Q3 of the next fiscal year pending regulatory approvals, will see Bain Capital classified as a promoter and jointly controlling the company with the existing promoters.

Founded in 1949, Manappuram Finance is the second-largest gold loan financier in India, serving over 6.59 million customers through 5,357 branches. It has diversified into microfinance, vehicle finance, housing finance, and SME lending. However, the company reported a 50.76% decline in net profit to Rs 282.06 crore for Q3 December 2024, despite a 10.14% increase in total income to Rs 2,562.63 crore compared to the same period last year.

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