Valapad: Manappuram Finance Limited has received all requisite regulatory approvals from the Reserve Bank of India (RBI) for the proposed acquisition of joint control by Bain Capital, marking a significant milestone in the company’s next phase of growth.
The approvals extend to Manappuram’s key subsidiaries—Asirvad Micro Finance Limited (AMFL) and Manappuram Home Finance Limited (MHFL)—for the indirect change in control and management. The development follows Bain Capital affiliates, BC Asia Investments XXV Limited and BC Asia Investments XIV Limited, securing clearance for their proposed investment of approximately ₹4,385 crore in the company.
With this, Manappuram Finance and its subsidiaries have now obtained all necessary statutory approvals related to the transaction, including compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, under which an open offer will be made.
The company and Bain Capital are targeting completion of the capital infusion by March 31, 2026. Bain Capital also plans to proceed with the open offer in line with regulatory timelines.
Post completion of the transaction and depending on the open offer subscription, Bain Capital is expected to hold between 18.0% and 41.66% stake in Manappuram Finance on a fully diluted basis, including shares arising from warrant conversions. The existing promoters will retain a 28.9% stake.
Following the acquisition, Bain Capital will be classified as a promoter and will jointly control the company alongside existing promoters. As part of the agreement, the boards of Manappuram Finance, AMFL, and MHFL will be reconstituted to include Bain Capital’s nominee directors.
