Manappuram Finance’s share price is shining bright, up nearly 6% to trade at an intra-day high of Rs 230 per share after the global investment firm Bain Capital entered into definitive agreements to acquire joint control in Manappuram Finance.
Bain Capital will invest Rs 4,385 crore in India’s second-largest gold financier to acquire shares and warrants worth 18% stake and will be classified as a joint promoter. Bain Capital will acquire the stake via a preferential allocation of shares priced at Rs 236 each, representing a 30% premium over the weighted average price.
As the global player will have joint control in the NBFC, it will be able to appoint a member on the board of the company as part of the deal.
The agreement will initiate an open offer for a further 26% stake in Manappuram Finance, which may allow Bain Capital to boost its ownership to over 40%.
ALSO READWhy are tech stocks falling today? Nifty IT Index down 1% after Accenture guidance Motilal Oswal on Manappuram Finance: Capital infusion to enhance growth
This substantial capital infusion is expected to strengthen Manappuram Finance’s financial position. It will enable the company to enhance operational efficiencies and expand its footprint across its key segments, including gold loans, vehicle finance, MSME lending, and microfinance. The joint control of Bain Capital will provide strategic guidance and expertise, facilitating the company’s next phase of growth. Onboarding a strategic investor and granting joint control for the company’s next phase of growth is a positive step, especially considering the limited visibility of succession planning.
Manappuram Finance’s Q3 result
The company reported a net profit of Rs 453 crore in the third quarter of FY25, an increase of 5.8% year-on-year, compared to Rs 429 crore posted in the same quarter a year ago. The net interest income saw a growth of 13.7% YoY, rising to Rs 1,161 crore in Q3 FY25, as against Rs 1,021 crore in the corresponding period of the last fiscal.
ALSO READWhat’s the next stop for the Nifty, can the rally sustain further? Manappuram Finance’s stock performance
The share price of Manappuram Finance has risen 4.7% in the last five trading sessions. The stock has given a return of 8% in the last one month and 4% in the past six months.
» Read More
