The Reserve Bank of India (RBI) has granted approval to the affiliates of Bain Capital, namely BC Asia Investments XXV and BC Asia Investments XIV, for acquisition of joint control of Manappuram Finance and its subsidiaries -- Asirvad Micro Finance (AMFL) and Manappuram Home Finance (MHFL). Further, the RBI has approved the indirect change in control and management of the respective companies pursuant to acquisition of control and shareholding in the company.
With this, the company and its subsidiaries are now in receipt of all requisite statutory approvals for Bain Capital’s proposed investment of around Rs 4,385 crore in the company and acquisition of joint control with the existing promoters. The company and Bain Capital are eyeing to complete the capital infusion in the company by March 31, 2026.
Upon completion of the investment and based on the open offer subscription, Bain Capital will hold between 18.0% and 41.66% shareholding in the company on a fully diluted basis (including shares to be issued upon exercise of warrants), and the existing promoters will hold 28.9% on a fully diluted basis. The respective Board of Directors of the company, AMFL and MHFL will be reconstituted and will include Bain Capital’s nominee directors, in line with the definitive agreements.
Manappuram Finance is a Systemically Important Non-Deposit taking Non Banking Finance Company (NBFC). The company provides a wide range of fund based and fee based services including gold loans, money exchange facilities, etc.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 924.40 |
| Shriram Finance | 1027.15 |
| Aditya Birla Capital | 341.80 |
| Chola Invest & Fin. | 1581.50 |
| Tata Capital | 326.65 |
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