RBI clears Bain Capital’s joint control of Manappuram Finance, subsidiaries

Pursuant to the proposed transaction and completion of the open offer, Bain Capital will be classified as a promoter of Manappuram Finance and will jointly control the company along with the existing promoters, it said.

• Bain Capital gets RBI nod for joint control of Manappuram Finance
• Bain Capital to invest Rs 4,385 crore, stake up to 41.66 percent
• Bain Capital nominees to join board post-deal completion

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Bain Capital has received approval from the Reserve Bank of India for joint management control of Manappuram Finance and its subsidiaries, following its planned investment in the gold loan firm.

After the proposed acquisition of up to 41.66 per cent stake in Manappuram Finance, its subsidiaries, Asirvad Micro Finance Limited and Manappuram Home Finance Limited,  will come under the joint control of the US-based private investment firm, the company said in a statement on Wednesday.

With this, the company said it has received all required statutory approvals for Bain Capital’s planned investment of about Rs 4,385 crore and joint control with existing promoters, along with the open offer under SEBI regulations.

Investment timeline, stake details

Manappuram Finance and Bain Capital now aim to complete the capital infusion by March 31, 2026, while the open offer will be carried out as per SEBI timelines.

Upon completion, Bain Capital is expected to hold between 18 per cent and 41.66 per cent stake in the company on a fully diluted basis, while the existing promoters will hold 28.9 per cent, the statement said.

Following the transaction and open offer, Bain Capital will be classified as a promoter and will jointly control the company with the existing promoters.

Board changes, earlier announcement

The boards of Manappuram Finance and its subsidiaries will be reconstituted to include Bain Capital’s nominee directors, in line with the agreement.

Bain Capital had announced its plan to acquire a stake in Manappuram Finance through its affiliates, BC Asia Investments XXV Limited and BC Asia Investments XIV Limited, in March last year, subject to regulatory approvals.