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Bain Capital, a prominent global private investment firm, has entered into a definitive agreement to gain joint control of the Kerala-based non-banking financial company (NBFC) Manappuram Finance.
The acquisition will be carried out through Bain Capital’s affiliates—BC Asia Investments XXV Limited and BC Asia Investments XIV Limited—in collaboration with the company’s current promoters, who will maintain full investment.
This strategic investment, valued at INR 4,385 crore, aims to facilitate Manappuram Finance’s next growth phase. Bain Capital intends to enhance the company’s leadership, improve operational excellence, and broaden its reach across significant financial sectors.
As part of the agreement, Bain Capital will acquire an 18.0% stake in Manappuram Finance on a fully diluted basis via a preferential allotment of equity and warrants at INR 236 per share—a 30% premium over the six-month average trading price. This transaction also invokes a mandatory open offer for an additional 26.0% stake in the company. Based on open offer subscriptions, Bain Capital’s total stake in Manappuram Finance could vary between 18.0% and 41.7%. After the transaction, the existing promoters will retain a 28.9% stake in the company. The deal is contingent on regulatory approvals and customary closing conditions.
“We are excited to partner with Mr. Nandakumar and his team to support Manappuram Finance in its upcoming growth phase,” said Pavninder Singh, Partner at Bain Capital. “This collaboration highlights our dedication to enhancing India’s financial services sector and increasing access to financial products that promote entrepreneurship and wealth creation.”
Established in 1949, Manappuram Finance has emerged as one of India’s leading NBFCs, specializing in gold loans while diversifying into microfinance, vehicle finance, housing finance, and SME lending. With a network of 5,357 branches spread across 28 states and union territories, the company services over 6.59 million customers and has assets under management (AUM) totaling INR 44,218 crore.
On the occasion of this deal, VP Nandakumar, MD and CEO of Manappuram Finance, remarked, “Manappuram Finance has continually added value to its stakeholders, and this new alliance with Bain Capital will usher us into the next growth phase. Bain Capital’s expertise and capital investment will support us in fostering innovation, improving operational efficiency, and unlocking new opportunities.”
Bain Capital has rich experience in India’s financial services domain, with previous investments in Axis Bank, L&T Finance Holdings, and 360One Wealth & Asset Management.
The firm received advice from Kotak Investment Banking, Boston Consulting Group, and legal advisors, whereas Manappuram Finance and its promoters were guided by Spark Capital and Khaitan & Co.
