RBI Clears Bain Capital’s Joint Control Acquisition in Manappuram Finance

Manappuram Finance Ltd has received all required approvals from the Reserve Bank of India for Bain Capital to acquire joint control in the company and its subsidiaries, the company said in a press release to the exchanges.

The approvals cover indirect change in control and management of subsidiaries including Asirvad Micro Finance Ltd and Manappuram Home Finance Ltd, following the proposed investment by Bain Capital affiliates, the company said in its release.

The company said the approvals mark a key milestone for Bain Capital’s planned investment of about ₹43.85 billion in Manappuram Finance, along with the open offer under takeover regulations.

Manappuram Finance said it expects to complete the capital infusion by March 31, while the open offer will be executed as per regulatory timelines.

Upon completion and depending on open offer subscription, Bain Capital is expected to hold between 18.0% and 41.7% stake in the company on a fully diluted basis. Existing promoters are expected to hold about 28.9%.

The company said Bain Capital will be classified as a promoter and will jointly control the business along with existing promoters. The boards of Manappuram Finance and its key subsidiaries will also be reconstituted to include Bain Capital nominees.