Bain Capital Secures RBI Approval to Acquire Up to 41.7% Stake in Manappuram Finance

Manappuram Finance has received final approval from the Reserve Bank of India (RBI) for Bain Capital to acquire joint control and up to 41.66% of the company’s equity and convertible instruments. The regulatory clearance marks a major milestone in one of the most closely watched private equity investments in India’s non-banking financial company (NBFC) sector.

The RBI approval relates to agreements signed in March, under which Bain Capital committed to invest approximately ₹43.85 billion (about $484.40 million) in Manappuram Finance. The investment will initially secure an 18% fully diluted stake at a price of ₹236 per share. Depending on the level of acceptance in the mandatory open offer, Bain Capital’s total shareholding could increase to as much as 41.7%.

Following the transaction, Manappuram’s existing promoters are expected to retain a 28.9% stake on a fully diluted basis. The deal structure allows Bain Capital to assume joint control, strengthening its footprint in India’s fast-growing financial services market.

Last month, reports indicated that the RBI had raised concerns about the transaction because Bain Capital already holds a controlling interest in another Indian lender. However, with the final approval now secured, the investment can move forward as planned.

Manappuram Finance is a leading NBFC specializing in gold loans, where borrowers pledge gold as collateral. The company manages a loan book of approximately ₹315 billion, with a strong focus on the expanding gold loan segment. Demand for gold-backed lending has surged in India, driven by rising gold prices and the need for quick, secured credit.

This strategic investment by Bain Capital underscores growing investor confidence in India’s NBFC sector and highlights the long-term growth potential of gold loan financing in the country.