Manappuram Finance shares drop 2% after RBI gives nod for Rs 4,385 crore Bain Capital deal – News Air Insight

Shares of Manappuram Finance dipped as much as 2.2% to their day’s low of Rs 264 on the BSE on Thursday after the company said that its subsidiaries, Asirvad Micro Finance and Manappuram Home Finance, have received approvals from the Reserve Bank of India for indirect change in control and management of the respective companies by Bain Capital.

This marks the final set of approvals for the Manappuram-Bain Capital deal amounting to Rs 4,385 crore. Having now received all requisite statutory approvals, the company and Bain Capital will aim to complete the capital infusion in the company by March 31, 2026.

Following the investment and completion of subscription to the open offer, Bain Capital will hold between 18% and 41.66% stake in the company on a fully diluted basis, including shares arising from warrant conversions. The existing promoters will hold 28.9% on a fully diluted basis. After completion of the transaction and the open offer, Bain Capital will be reclassified as a promoter and will jointly control the company along with the existing promoters.

The respective boards of Manappuram and its subsidiaries will be reconstituted and will include Bain Capital’s nominee directors, in line with the definitive agreements.

The global private investment firm last month received RBI approval for acquiring up to 41.66% in Manappuram and joint control of the company. The acquisition is being done through Bain’s affiliates BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd.

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Manappuram Finance share price

Shares of Manappuram Finance have come under pressure, declining 11% over the past month amid a weak market environment driven by the US-Israel-Iran conflict. The stock is down nearly 15% so far this year. However, it has delivered strong returns over the longer term, gaining almost 27% over the past one year.

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Manappuram Finance Q3

The gold loan-focused NBFC reported a consolidated net profit of Rs 381 crore for Q3, down 15.9% from Rs 453 crore in the same period last year. Net interest income (NII) remained largely flat, slipping 0.9% year-on-year to Rs 1,150 crore from Rs 1,161 crore a year ago.

Revenue from operations, however, rose 6.5% year-on-year to Rs 1,915.35 crore during the quarter, indicating steady business momentum despite pressure on margins.

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