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Manappuram Finance Gets 'Buy' Upgrade From IDBI Capital; Bain Capital Joining As Joint Promoter To Be Positive
Bain Capital will invest Rs 43.85 billion to acquire 18% stake on a fully diluted basis via preferential allotment of equity and warrants at a price of Rs 236/share.
21 Mar 2025, 09:18 AM IST 
Based on the open offer subscription, Bain Capital’s stake in Manappuram will between 18.0-41.7%, while existing promoters will hold 28.9% stake post investment.
(Photo Source: NDTV Profit)
Manappuram has been facing challenges, including market share loss to a major competitor in the gold loan segment and stress in its microfinance (MFI) portfolio. With Bain Capital joining as a joint promoter, the company is well-positioned to revamp its business strategy and regain lost ground in the gold loan industry. However, challenges in the MFI portfolio are expected to persist, in line with broader industry trends.
