Manappuram surges 7%; nears record high on strategic deal with Bain Capital

A strategic deal with Bain Capital Asia, which will invest Rs 4,385 crore through a preferential allotment at Rs 236 per share, at a premium of 30%, will give it an 18% stake in the company

Shares of Manappuram Finance jumped over 7 per cent on Friday after the company informed the exchanges that Bain Capital will be investing ₹4,385 crore to acquire 18 per cent stake in the company. The move will help the US private equity firm gain control over the gold loan provider, and ease its management succession plans. 

Bain Capital will subscribe to Manappuram’s shares and warrants at ₹236 apiece, at a 9 per cent premium over the stock's closing price on Thursday of ₹217.5. 

After the investment, which is valued at $508 million, Bain Capital will jointly control Manappuram with other