Bain Capital is close to sealing a deal with the promoters of Kerala-based gold loan provider Manappuram Finance to acquire a controlling stake, The Economic Times reported on February 24.
The deal comes soon after the Reserve Bank of India lifted curbs on the non-bank lender’s subsidiary Asirwad Micro Finance a month ago, the report said.
Manappuram Finance stock reacted positively to the report, jumping 2.45 percent to Rs 206.25 on NSE on February 24.
"We have taken note of the captioned news item, and confirm that currently there is no information, which requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations)," the company said in statement in response to the media report.
Further, the company said, "As a general matter, the company, as part of its business strategy, explores various strategic / growth opportunities in the best interest of its stakeholders, from time to time. Considering that the shares of the Company are freely traded on the stock exchanges, the Company will not be in a position to comment on the movement in its share price."
Managing director and chief executive Nandakumar VP, who owns 35.35 percent, leads the promoter group. The company has a market capitalisation of Rs 17,000 crore based on the closing price of Friday.
Early this month, the company had reported a weaker-than-expected December quarter earnings due to stress in its microfinance business.
The consolidated net profit declined to Rs 282 crore in Q3FY25, while bad loans and provisions from its microfinance arm surged fourfold to Rs 473 crore.
Manappuram’s gold loan portfolio, which makes up 75 percent of its total revenue, jumped 17 percent, benefiting from record-high gold prices.
In December, Moneycontrol had reported that the deal could face some delays as there was some disagreements over the terms put forward by Manappuram promoters for the transaction.
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