CCI Approves Bain Capital’s Acquisition Strategy in Manappuram Finance and Asset Finance
The Competition Commission of India (CCI) has approved a comprehensive acquisition proposal involving Manappuram Finance Limited (MFL) and Manappuram Asset Finance Limited (MAFL) by Bain Capital.
The transaction includes multiple components:
- Private placement: BC Asia Investments XXV Ltd (Acquirer 1) will subscribe to over 9.29 crore equity shares of MFL.
- Warrant subscription: BC Asia Investments XIV Ltd (Acquirer 2) will subscribe to 9.29 crore warrants, convertible into equity shares within 4 to 18 months.
- Open offer: A mandatory open offer by Acquirer 1 and its group to acquire up to 26% of the expanded voting capital (over 24.42 crore shares) from MFL’s public shareholders.
- Acquisition of MAFL: A merger where MFL will acquire its asset finance subsidiary MAFL.
Bain Capital, a prominent global private equity firm, invests across sectors including finance, technology, and consumer services. Manappuram Finance is a Kerala-based NBFC offering gold, MSME, vehicle, and housing loans. MAFL primarily provides gold loans along with property, vehicle, and microfinance loans.
The proposed combination is expected to strengthen the financial capabilities and capital base of Manappuram group, enhancing its reach and growth prospects in the NBFC sector. A detailed final order from the CCI is awaited.
Source: PIB
