New Delhi, March 18 Bain Capital has received approval from the RBI for joint management control of Manappuram Finance and its subsidiaries following the acquisition of a stake in the gold loan firm.
Following the proposed acquisition of up to 41.66 per cent stake in Manappuram Finance, its subsidiaries Asirvad Micro Finance Limited (AMFL) and Manappuram Home Finance Limited (MHFL) would come under the joint control of the US-based global private investment firm Bain Capital, Manappuram Finance said in a statement on Wednesday.
With this, Manappuram Finance and its subsidiaries now have all the necessary statutory approvals for Bain Capital's proposed investment of approximately Rs 4,385 crore and joint control with the existing promoters, along with the subsequent open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, it added.
Having now received all the necessary statutory approvals, Manappuram Finance and Bain Capital aim to complete the capital infusion in the company by March 31, 2026, and Bain Capital intends to complete the open offer in accordance with the timelines prescribed under the Sebi norms, it said.
Upon completion of the investment and based on the open offer subscription, Bain Capital will hold between 18 per cent and 41.66 per cent of the shares in Manappuram Finance on a fully diluted basis (including shares to be issued upon exercise of warrants), and the existing promoters will hold 28.9 per cent on a fully diluted basis, the statement said.
Following the proposed transaction and completion of the open offer, Bain Capital will be classified as a promoter of Manappuram Finance and will jointly control the company along with the existing promoters, it said.
The respective Boards of Directors of the company, AMFL and MHFL, will be reconstituted and will include Bain Capital's nominee directors, in line with the definitive agreements, it said.
Bain Capital announced its intent to acquire a stake in Manappuram Finance through its affiliates -- BC Asia Investments XXV Limited and BC Asia Investments XIV Limited -- in March last year, subject to regulatory approval.