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Upon completion of the transaction and a mandatory open offer, Bain Capital will be classified as a joint promoter
Manappuram Finance Shares
Manappuram Finance Share Price: Manappuram Finance Limited shares are in focus today after the company announced a Rs 4,385 crore investment deal with Bain Capital Asia. Under the deal, the private equity firm will acquire an 18% stake via a preferential allotment of equity shares and warrants.
Upon completion of the transaction and a mandatory open offer, Bain Capital will be classified as a joint promoter alongside the existing promoters, V.P. Nandakumar and Sushama Nandakumar.
According to a company filing on March 20, Bain Capital, through its investment arm BC Asia Investments XXV Limited, will acquire 9.29 crore equity shares at Rs 236 per share. An equal number of warrants will be issued to BC Asia Investments XIV Limited at the same price, each warrant being convertible into one equity share.
The conversion option can be exercised in one or more tranches between four and 18 months from the allotment date. The transaction is subject to shareholder approval and regulatory clearances from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
As part of the deal, Bain Capital will have the right to appoint a director to the board of Manappuram Finance, granting it joint control of the non-banking financial company (NBFC).
The deal will also trigger a mandatory open offer for an additional 26% stake in Manappuram Finance, which could potentially increase Bain Capital’s holding to over 40%.
Following the transaction, the existing promoters will retain a 28.9% stake in the company.
In a separate move, the board of Manappuram Finance has approved an agreement with V.P. Nandakumar and Manappuram Asset Finance Limited (MAFL) to acquire a 99.917% stake in MAFL, a non-deposit-taking NBFC.
Manappuram Finance has scheduled an Extraordinary General Meeting (EGM) on April 16, 2025, to seek shareholder approval for the preferential allotment and related amendments to its Articles of Association.
