Manappuram Finance has announced a deal with Bain Capital Asia, as part of which the private equity player will invest Rs 4,385 crore into the NBFC to acquire shares and warrants worth 18% stake, and will be classified as a joint promoter, a company filing said on March 20.
Moneycontrol was the first to report about the deal earlier in the day.
The stake will be purchased by Bain Capital through a preferential allotment of shares at a price of Rs 236 per share, which is a 30% premium to the weighted average price. Bain Capital will get the right to appoint a member on the board of the company as part of the deal, giving it joint control of the NBFC. The deal will trigger an open offer for additional 26% stake in Manappuram Finance, which could potentially lead to Bain Capital increase its stake by more than 40%.
The existing promoters of Manappuram will hold 28.9% stake in the NBFC after the deal.
The Board also approved an agreement between Manappuram Finance, VP Nandakumar and Manappuram Asset Finance (MAFL) to acquire 99.917% stake in the a non-deposit taking NBFC.
Manappuram's subsidiary - Asirvad Micro Finance - which had filed a draft red herring prospectus on October 4, 2023 with Sebi for a proposed IPO will subsequently be withdrawn. The NBFC informed that the board of AMFL approved the withdrawal of the DRHP and Asirvad will make the necessary application to Sebi in this regard.
Manappuram is a leading gold finance company, and this deal with Bain Capital is expected to bring further operational efficiencies as well as better governance.
This is being updated.
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