Fri Mar 21 15:20:00 UTC 2025: **Manappuram Finance Shares Surge 10% on Bain Capital Investment**
MUMBAI, INDIA – Manappuram Finance shares soared 10 percent on March 21, reaching record highs, following the announcement that Bain Capital will invest ₹4,385 crore (approximately $530 million USD) for an 18 percent stake in the non-banking financial company (NBFC). The shares were trading at ₹224.31 apiece in morning trade.
The investment will be made through a preferential allotment of equity shares and warrants, with Bain Capital becoming a joint promoter alongside existing promoters V.P. Nandakumar and Sushama Nandakumar. The deal, subject to shareholder and regulatory approvals, including from the Reserve Bank of India (RBI) and Competition Commission of India (CCI), will be finalized at an Extraordinary General Meeting (EGM) on April 16. Upon completion, Bain Capital will have the right to appoint a director to the board.
This transaction will trigger a mandatory open offer for an additional 26 percent stake, potentially increasing Bain Capital’s holding to over 40 percent. Existing promoters will retain a 28.9 percent stake.
Analyst opinions are divided. Motilal Oswal maintains a ‘Neutral’ rating with a target price of ₹240, while IDBI Capital Markets upgraded its rating to ‘Buy’ with a revised target price of ₹252 (previously ₹200).
The news comes alongside a report on India’s largest regional retail option traders summit, “BOTS,” organized by Traders Gurukul. The summit, held on the 2nd or 3rd Sunday of each month across major Indian cities, aims to improve access to market information and potentially generate leads for brokers. Disclaimer: Investment decisions should be made in consultation with certified financial experts.
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