March 24, 2025– Bain Capital, a leading global private investment firm, has announced its acquisition of joint control in Manappuram Finance, one of India’s foremost non-banking financial companies (NBFCs) and the second-largest gold financier in the country. The firm will invest ₹4,385 crore (approximately $508 million) to acquire an 18% stake in the company through its affiliates, BC Asia Investments XXV Limited and BC Asia Investments XIV Limited. This strategic move is expected to enhance Manappuram Finance’s operational excellence and expand its market presence.
The investment will be executed via a preferential allotment of equity and warrants priced at ₹236 per share, which represents a 30% premium over the six-month average trading price. As part of the agreement, Bain Capital will trigger a mandatory open offer for an additional 26% stake in Manappuram Finance. Depending on the subscription to this open offer, Bain’s total stake could increase to between 18% and 41.7%.
Existing promoters of Manappuram Finance, including V.P. Nandakumar and his family, will continue to hold a significant 28.9% stake post-transaction. This partnership aims to leverage Bain Capital’s extensive experience in financial services to drive transformation within Manappuram Finance, enhancing leadership and operational capabilities while expanding into key financial segments.
Founded in 1949, Manappuram Finance has established itself as a trusted financial institution with a customer base exceeding 6.59 million and a network of over 5,357 branches across India. The company has successfully diversified its offerings beyond gold loans into microfinance, vehicle finance, housing finance, and SME lending.
Nandakumar expressed enthusiasm about the partnership with Bain Capital, noting that their commitment to excellence aligns with Manappuram’s mission to uphold high standards in the NBFC sector. The collaboration is expected to unlock new opportunities for innovation and sustained success.
Bain Capital’s investment comes at a time when the Indian gold loan sector is experiencing significant growth, fueled by rising gold prices and increasing demand for gold-backed loans. Analysts project that the sector could reach approximately ₹14.19 trillion by fiscal year 2029, highlighting the potential for further expansion.
With this acquisition, Bain Capital aims not only to support Manappuram Finance’s growth trajectory but also to contribute to the broader development of India’s financial services landscape.
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