The Reserve Bank of India has given its approval for a proposed investment by global private equity firm Bain Capital in Manappuram Finance. The central bank has greenlit the acquisition of up to 41.66% of the company's paid-up equity capital and convertible instruments by Bain Capital's affiliates, BC Asia Investment XXV and BC Asia Investments XIV.
This comes on the back of definitive agreements signed in March 2025, paving the way for the gold loan major to go through a significant change in ownership structure.
However, the approval comes with conditions. Any acquisition by the investors that takes their holding beyond 26% of Manappuram's paid-up capital, excluding conversion of warrants, after one year, will require prior RBI approval, the company confirmed in an exchange filing.
Manappuram must also ensure that investors submit an RBI-compliant action plan within a specified timeline in order to avoid majority control in more than one non-banking finance company of the same category or housing finance company within their group.
The lender added that separate regulatory approvals are still pending for its subsidiaries Asirvad Micro Finance Ltd. and Manappuram Home Finance Ltd. for the underlying investment and open offer. Completion of the transaction remains subject to those approvals and other contractual conditions agreed with the investors.
Once completed, the deal would mark one of the largest private equity investments in India's nonbank lending sector in recent years, strengthening Manappuram's capital base and growth plans across retail lending segments.
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