Bain Capital-Manappuram Deal Enters Final Stage

Talks with Manappuram Finance, India's second-largest gold loan financier, are on the threshold of being finalized. Bain would acquire a majority stake in the Kerala company, currently controlled by CEO VP Nandakumar, who owns 35.25% in the company. The deal includes preferential allotment of shares...

Talks with Manappuram Finance, India's second-largest gold loan financier, are on the threshold of being finalized. Bain would acquire a majority stake in the Kerala company, currently controlled by CEO VP Nandakumar, who owns 35.25% in the company. The deal includes preferential allotment of shares and a promoter secondary sale that could have Bain owning up to 46%. Bain aims to focus on Manappuram's robust gold loan book, accounting for 53% of its assets under management (AUM). Troubles in regulatory matters and unprofitable areas like microfinance have, however, complicated the negotiations. If the deal is executed, Bain plans to appoint a new CEO as the Nandakumar family shifts to non-executive roles. The takeover would cost Bain approximately ₹9,000-10,000 crore, a 20-25% premium on current market prices. Source: Economic Times, Business Standard