Manappuram Finance shares jump 10% to record high after Rs 4,400 crore deal with Bain Capital

Manappuram Finance

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26 Aug, 2025 12:21

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Manappuram Finance shares gain at record level, rising 10 percent on March 21 after the company informed exchanges that Bain Capital will be investing Rs 4,385 crore to acquire 18 percent stake in the company. The shares of the company were trading at Rs 224.31 apiece in morning trade.

Following this latest development, Motilal Oswal has kept a 'Neutral' rating on Manappuram Finance, with a target price of Rs 240. While, IDBI Capital Markets has raised it to 'Buy' with a new target price of Rs. 252 (earlier Rs.200).

Manappuram Finance's Extraordinary General Meeting (EGM) is set to take place on April 16, where the company will seek shareholders' approval on the preferential allotment and related amendments associated with Articles of Association.

The deal will be executed through a preferential allotment of equity shares (9.29 crore equity shares at Rs 236 per share) and warrants, after completion of which, Bain Capital will be classified as a joint promoter of the company, alongside existing promoters V.P. Nandakumar and Sushama Nandakumar.

Bain Capital will acquire the said stake through its investment arm, BC Asia Investments XXV Limited. Meanwhile an equal number of warrants will be issued to BC Asia Investments XIV Limited at the same price. Each warrant will be convertible into one equity share, with the conversion option available in multiple tranches over four to 18 months.

The deal is subject to shareholder approval and regulatory clearances from the RBI and CCI. If approved, Bain Capital will also gain the right to appoint a director to Manappuram Finance’s board, giving it joint control of the NBFC.

This transaction will lead to a mandatory open offer for a 26 percent stake, increasing Bain Capital's potential holding to over 40 percent. Post the transaction, existing promoters will retain a 28.9 percent stake in the company.

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