Bain Capital floats Rs 5,764 cr open offer to pick additional 26% in Manappuram Finance

US-based private investment firm Bain Capital has launched Rs 5,764 crore open offer to acquire an additional 26 per cent stake in gold loan financier Manappuram Finance. The open offer was triggered following Bain Capital’s decision on Thursday to acquire an 18 per cent stake in Manappuram Finance for a consideration of Rs 4,385 crore.

The open offer price has been fixed at Rs 236 per share. Based on the open offer subscription, Bain Capital’s stake post the investment will vary between 18 per cent to 41.7 per cent on a fully diluted basis.

As per the term sheet by the offer manager Kotak Mahindra Capital, up to 24,42,27,387 fully paid up equity shares of face value of Rs 2 each of the Manappuram Finance constituting 26 per cent of the expanded voting share capital at a price of Rs 236 per share for a total consideration of up to Rs 5,763.76 crore.

Existing promoters will hold a 28.9 per cent stake in the company post the investment on a fully diluted basis, including shares to be issued pursuant to the exercise of warrants.

The transaction is subject to customary closing conditions and regulatory approvals.

Founded in 1949, Manappuram Finance is a leading non-banking financial institution, it has grown to serve over 6.59 million customers through an extensive network of 5,357 branches and a workforce of 50,795 employees. The Kerala-based company has expanded beyond gold loans into microfinance, vehicle finance, housing finance and SME lending, establishing itself as a diversified financial services provider with significant scale and strong growth momentum.

Bain Capital has deep experience in investing to support the growth and leadership of a diversified set of financial services businesses in India and globally, including Axis Bank, 360One Wealth & Asset Management, L&T Finance Holdings, and Lionbridge Capital, among others.