CHENNAI: Manappuram Finance Limited on Wednesday announced its subsidiaries ie Asirvad Micro Finance Ltd (AMFL) and Manappuram Home Finance Ltd (MHFL) have got the requisite approvals from the Reserve Bank of India (RBI) for indirect change in control and management of the respective companies pursuant to acquisition of control and shareholding in the company by affiliates of Bain Capital, namely BC Asia Investments XXV Limited and BC Asia Investments XIV Limited (Bain Capital).
With this, the company and its subsidiaries are now in receipt of all requisite statutory approvals for Bain Capital’s proposed investment of approximately Rs 4,385 crore in the company and acquisition of joint control with the existing promoters, together with the consequent open offer under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Alongwith Bain Capital, it will aim to complete the capital infusion in the Manappuram Finance by March 31, 2026 and Bain Capital intends to complete the open offer in accordance with the timelines prescribed under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Upon completion of the investment and based on the open offer subscription, Bain Capital will hold between 18.0% and 41.66% shareholding 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% on a fully diluted basis. Pursuant to the proposed transaction and completion of the open offer, Bain Capital will be classified as a promoter of the Company and will jointly control the Company along with the existing promoters. The respective Board 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.