Bain Capital gets RBI approval for Rs 4,385 crore investment in Manappuram Finance

Manappuram Finance said on Wednesday it has received all regulatory approvals from the Reserve Bank of India for Bain Capital to acquire joint control of the company and its subsidiaries as part of a proposed investment of approximately Rs 4,385 crore.

The company said its subsidiaries – Asirvad Micro Finance Limited (AMFL) and Manappuram Home Finance Limited (MHFL) – have also obtained approvals from the central bank for an indirect change in control and management following the proposed acquisition of shareholding by Bain Capital affiliates BC Asia Investments XXV Limited and BC Asia Investments XIV Limited.

With the approvals in place, the company said Bain Capital’s investment and the related open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 can now proceed.

The company and Bain Capital said they aim to complete the capital infusion by March 31, 2026. Bain Capital also plans to complete the open offer in accordance with the timelines prescribed under the takeover regulations.

Following the transaction and depending on the outcome of the open offer, Bain Capital is expected to hold between 18% and 41.66% of Manappuram Finance on a fully diluted basis, including shares to be issued upon the exercise of warrants.

The existing promoters are expected to retain about 28.9% shareholding in the company on a fully diluted basis.

Upon completion of the transaction, Bain Capital will be classified as a promoter of Manappuram Finance and will jointly control the company along with the existing promoters.

The company said the boards of Manappuram Finance and its subsidiaries – Asirvad Micro Finance and Manappuram Home Finance – will be reconstituted after the investment, with Bain Capital nominating directors in line with the definitive agreements governing the transaction.