Manappuram Finance Ltd on Monday issued clarification on media reports regarding a potential $1 billion deal with Bain Capital, saying that there is no information available which requires disclosure under SEBI’s Listing Regulations.
In a regulatory filing, the company said, “We have taken note of the captioned news item, and confirm that currently there is no information which requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). As a general matter, the Company, as part of its business strategy, explores various strategic / growth opportunities in the best interest of its stakeholders, from time to time.”
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Earlier, shares of Manappuram Finance rose 2.29 per cent to Rs 205.45 following media reports indicating that Bain Capital is considering acquisition of a significant portion of the company’s promoter stake. Per the reports, the deal was expected to see Manappuram’s promoter group, led by managing director and CEO VP Nandakumar, selling a substantial portion of its 35.25 per cent holding to Bain Capital. If the deal had materialized, the report went on to add, Bain Capital may subsequently launch a voluntary open offer to acquire an additional 26 per cent stake in Manappuram Finance.
Following the surge in share price due to this, the stock exchanges had sought clarification from Manappuram Finance.
Commenting on the shares surge, the company said in the regulatory filing, “Considering that the shares of the Company are freely traded on the stock exchanges, the Company will not be in a position to comment on the movement in its share price. The Company has promptly intimated the stock exchanges regarding all events and disclosed all information that have a bearing on the operations/ performance of the Company, in accordance with Regulation 30 of the Listing Regulations as and when required, and will continue to do so in accordance with applicable law.”
Earlier this month, Manappuram Finance had released its fiscal third quarter earnings with profit at Rs 453.4 crore, up 5.8 per cent in comparison to Rs 428.6 crore in the corresponding period last year. The company’s net interest income (NII) saw a healthier growth of 13.7 per cent YoY to reach Rs 1,160.9 crore.
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