Manappuram Finance Ltd on Thursday said its subsidiaries, Asirvad Micro Finance Ltd (AMFL) and Manappuram Home Finance Ltd (MHFL), have received approvals from the Reserve Bank of India for an indirect change in control and management by affiliates of Bain Capital.
The regulatory clearances mark a key milestone in the proposed strategic investment, which is aimed at supporting the next phase of growth for the company and its subsidiaries, the firm said in a regulatory filing.
With this, the company has secured all requisite statutory approvals for Bain Capital’s proposed investment of about ₹4,385 crore and acquisition of joint control alongside the existing promoters. The transaction also triggers an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Manappuram Finance and Bain Capital plan to complete the capital infusion by March 31, 2026. Bain Capital will proceed with the open offer in accordance with regulatory timelines.
Upon completion, and depending on the level of subscription to the open offer, Bain Capital is expected to hold between 18% and 41.66% stake in the company on a fully diluted basis, while the existing promoters will retain around 28.9%.
Following the transaction, Bain Capital will be classified as a promoter and will exercise joint control of Manappuram Finance along with the existing promoters. The boards of Manappuram Finance, AMFL and MHFL will be reconstituted to include nominee directors of Bain Capital, in line with the definitive agreements.
The investment is being routed through Bain Capital affiliates, including BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd.