New Delhi, March 20 -- Private equity firm Bain Capital has agreed to acquire joint control of Manappuram Finance Ltd, a Kerala-based non-banking financial company and India's second-largest gold financier, in a deal worth more than $500 million.
The PE firm said in a statement Thursday it will invest Rs 4,385 crore ($508) to acquire an 18% stake in Manappuram via a preferential allotment of equity shares and warrants at a price of Rs 236 apiece. This is at a premium of about 30% over the six-month average trading price.
The transaction will trigger a mandatory open offer for the purchase of an additional 26% stake in the company on an expanded capital basis (excluding warrants). The open offer price has been fixed at Rs 236 per share. Based on the open offer subscription, Bain Capital's stake will vary between 18% and 41.7% on a fully diluted basis.
Manappuram existing promoters will continue to stay fully invested in the lender. They will hold a 28.9% stake in the company post the investment on a fully diluted basis.
Bain said this investment aims to fuel the company's next phase of growth and drive transformation by enhancing operational excellence, strengthening leadership, and expanding its presence across key segments.
The transaction is subject to customary closing conditions and regulatory approvals.
Published by HT Digital Content Services with permission from VC Circle.