The Reserve Bank of India (RBI) has approved a major investment by Bain Capital in Manappuram Finance, allowing the global firm to acquire joint control of the company and its subsidiaries.
Manappuram Finance said the RBI has given the green signal for an indirect change in control of its key units, including Asirvad Micro Finance and Manappuram Home Finance. This approval is a crucial step for completing the deal.
The transaction is valued at around ₹4,385 crore, making it one of the significant investments in India’s non-banking financial sector in recent times. As part of the deal, Bain Capital will become a co-promoter of Manappuram Finance along with the existing promoters.
Initially, Bain Capital is expected to acquire an 18% stake in the company. It will also launch an open offer to public shareholders. If fully subscribed, this could increase its total stake to about 41.7%.
The RBI’s approval is mandatory for such ownership changes in financial institutions. It also allows Bain Capital to have representation on the company’s board and take part in management decisions.
Manappuram Finance believes the investment will strengthen its capital base and support future expansion. The company plans to use the funds to grow its lending business across segments such as gold loans, microfinance, and housing finance.
Market reaction to the announcement was cautious. Shares of Manappuram Finance saw a slight decline after the news, reflecting investor concerns about changes in ownership and control.
The deal is expected to be completed by the end of March 2026, subject to the completion of the open offer and other regulatory requirements.
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