As part of the deal Bain Capital will secure the right to appoint a board member granting it joint control of the NBFC.
Bain Capital-Manappuram Finance Deal: Key Highlights
Bain Capital has confirmed an investment of ₹4385 crore in Manappuram Finance, acquiring an 18% stake in the non banking financial company. As part of the agreement. Bain Capital will also gain the right to appoint a board member effectively securing joint control of the company. This strategic investment is expected to enhance Manappuram Finances growth and expand its financial services portfolio.
Manappuram Finance has entered into an agreement with Bain Capital Asia under which the private equity firm will invest ₹4385 crore in the NBFC. The investment will be used to acquire shares and warrants giving Bain Capital an 18% stake in the company. As per a company filing on March 20. Bain Capital will also be classified as a joint promoter.
Manappuram Finance has entered into a strategic agreement with Bain Capital Asia under which the private equity firm will invest ₹4385 crore in the NBFC. The investment will be made through a preferential allotment of shares at ₹236 per share representing a 30% premium to the weighted average price.
Key Aspects of the Deal-
Stake Acquisition: Bain Capital will acquire an 18% stake in Manappuram Finance through shares and warrants. Joint Control– As part of the agreement Bain Capital will gain the right to appoint a board member effectively securing joint control of the NBFC. Open Offer– The deal will trigger an open offer for an additional 26% stake potentially increasing Bain Capitals total holding to over 40%.
Promoter Holding: Following the transaction existing promoters will retain a 28.9% stake in the company. MAFL Acquisition: The board has also approved an agreement between Manappuram Finance VP Nandakumar, and Manappuram Asset Finance to acquire 99.917% stake in MAFL a non-deposit taking NBFC.
Manappuram Finance a leading gold loan provider is set to benefit from its strategic deal with Bain Capital. The investment is expected to enhance operational efficiencies and strengthen corporate governance within the NBFC.