Bain Capital makes open offer to raise Manappuram stake to 41.7% – News Air Insight

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Bain Capital on Wednesday made an open offer for acquiring an additional 26% in gold loan company Manappuram Finance at Rs 236 per share. This is in line with regulatory mandate following its acquisition of 18% in the kerala-based non-bank lender for Rs 4385 crore.

Bain Capital’s holding in Manappuram would rise from 18% up to 41.66% on a fully diluted basis depending upon the subscription to the open offer.

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

The acquisition is being done through Bain’s affiliates BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd.

The Kerala-based gold loan company received final regulatory approval for the acquisition deal last week. Bain is likely to complete the capital infusion before the fiscal end.


The final regulatory approval is however subject to a couple of conditions. One of these is that Bain Capital will have to submit an action plan to reduce its majority stake in Tyger Capital.



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