NEW DELHI: US-based private investment firm Bain Capital has launched a Rs5,764 crore open offer to acquire an additional 26 percent stake in gold loan financier Manappuram Finance, marking one of its biggest investments in India’s financial sector.
The open offer follows Bain Capital’s agreement on Thursday to buy an 18 per cent stake in Manappuram Finance for Rs4,385 crore. With the open offer price set at Rs236 per share, Bain’s total holding in the company could range from 18 per cent to 41.7 per cent on a fully diluted basis, depending on investor response.
According to the offer document by Kotak Mahindra Capital, Bain’s open offer covers 24.42 crore fully paid-up equity shares (Rs2 face value each), constituting 26 per cent of the expanded voting share capital.
Following this investment, the existing promoters’ stake will be diluted to 28.9 per cent, including shares from warrant conversions. The deal remains subject to regulatory approvals and closing conditions.
Founded in 1949, Manappuram Finance has grown into a leading non-banking financial company, serving 6.59 million customers across 5,357 branches with a workforce of over 50,000 employees.
While gold loans remain its core business, the company has diversified into microfinance, vehicle finance, housing finance, and SME lending, positioning itself as a full-scale financial services provider.
With Bain Capital’s backing, Manappuram is expected to sharpen its competitive edge against Muthoot Finance, which has long dominated India’s gold loan market.
Bain Capital has a strong presence in India’s financial services sector, with investments in Axis Bank, 360One Wealth & Asset Management, L&T Finance Holdings, and Lionbridge Capital.
Its investment in Manappuram could accelerate the company’s expansion and reshape competition in the gold loan industry.
