Bain Capital is in the final stages of negotiations to acquire a controlling stake in Manappuram Finance, a prominent Kerala-based gold loan provider and non-bank financial company (NBFC), according to sources familiar with the matter. This deal comes after the Reserve Bank of India (RBI) lifted restrictions on the company’s subsidiary, Asirvad Micro Finance, a month ago.
Manappuram Finance, which has a market capitalization of Rs 17,000 crore as of Friday’s closing price of Rs 200.85 on the Bombay Stock Exchange (BSE), is primarily led by its managing director and CEO, Nandakumar VP. The promoter group currently holds a 35.25% stake in the company.
Bain Capital’s acquisition plan includes two key components: an infusion of fresh capital through a preferential allotment and a secondary share sale by the promoters. The preferential allotment is expected to be priced at a premium of 12.5-15% over the current market price, while the secondary sale of shares is likely to be priced 22.5-25% above Friday’s closing price, sources said. This would set the blended share price in the range of Rs 237-240 per share.
This transaction follows earlier reports by ET on November 13, revealing that Bain Capital and Manappuram were in advanced talks for the deal.
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