RBI okays Bain Capital stake buy in Manappuram

Gold-loan Non-banking Finance Company Manappuram Finance Ltd has received final approval from the Reserve Bank of India (RBI) for the proposed acquisition of joint control and shareholding of up to 41.66 per cent in the company by affiliates of Bain Capital.

Listen to this article

The RBI approval was communicated on 13 February 2026.

The  final approval granted by the RBI is subject to other conditions specified by the RBI, including: (i) any acquisition of shareholding of the company by the proposed investors resulting in them crossing 26 per cent of the paid-up share capital of the Company (other than pursuant to conversion of warrants as part of the proposed investment) after one year as prescribed by RBI shall require prior approval of the RBI; and (ii) Company is required to advise the Investors to furnish an action plan to the RBI within the timeline specified by RBI to ensure that there will not be more than one non-banking financial company of the same category /housing finance company within their group with majority shareholding and control.

In March 2025, Manappuram entered a definitive agreement with Bain Capital to invest about Rs 4,385 crore to acquire an 18 per cent stake on a fully diluted basis through preferential allotment of equity shares and warrants at a price of Rs 236 a share.

The transaction also triggers a mandatory open offer for the purchase of an additional 26 per cent stake from public shareholders at Rs 236 per share.

Based on the open offer subscription, Bain Capital’s stake post-investment will vary between 18 per cent and 41.7 per cent on a fully diluted basis (including shares to be issued pursuant to exercise of warrants). The existing promoters will hold 28.9 per cent post-investment on a fully diluted basis.

The investments will be made by Bain Capital affiliates BC Asia  Investments XXV Ltd and BC Asia Investments XIV Ltd.

With RBI’s approval, Bain Capital will be classified as a promoter and will jointly control Manappuram Finance along with the existing promoters. The board will be reconstituted and will include nominee directors of Bain Capital, in line with the transaction agreements.

“With Bain Capital coming on board as a joint controlling shareholder, we are well-positioned to accelerate growth in our core segments, invest further in technology and risk management capabilities, and build a professionally managed, future-ready financial services company. It will also help us enhance and expand our branch network pan India. We remain committed to creating long-term value for our customers, employees, and shareholders,” V.P. Nandakumar, MD & CEO, Manappuram Finance Ltd, said.

The approval of the RBI in respect of Asirvad Micro Finance Lts and Manappuram Home Finance Limited for the underlying proposed investment and the Open Offer is pending, the company said.

Latest

India Post records highest ever Q1 revenue

The Minister held Business Review Meeting with all 23...

MRF ranked India’s most valuable tyre brand

The company also featured among the Top 50 most...

Aditya Birla Group buys Shell’s renewable arm for $1.8 bln

The company will make the acquisition from Shell Overseas...

TVS Emerald to develop residential project in West Chennai

The Koyembedu–Poonamallee corridor, a rapidly expanding residential micro-market that...

Newsletter

Don't miss

India Post records highest ever Q1 revenue

The Minister held Business Review Meeting with all 23...

MRF ranked India’s most valuable tyre brand

The company also featured among the Top 50 most...

Aditya Birla Group buys Shell’s renewable arm for $1.8 bln

The company will make the acquisition from Shell Overseas...

TVS Emerald to develop residential project in West Chennai

The Koyembedu–Poonamallee corridor, a rapidly expanding residential micro-market that...

Retail Inflation crosses 4% in June

“Food inflation contributed 185 basis points (bps), while non-food...

India Post records highest ever Q1 revenue

The Minister held Business Review Meeting with all 23 Circles of India Post, which reviewed performance and charted the roadmap for the months ahead. India...

MRF ranked India’s most valuable tyre brand

The company also featured among the Top 50 most valuable brands in India across sectors in the report. Brand Finance India report, unveiled under the...

Aditya Birla Group buys Shell’s renewable arm for $1.8 bln

The company will make the acquisition from Shell Overseas Investment B.V and the transaction is amongst the largest acquisitions in India’s renewable energy sector...