The open offer will see Bain Capital buying up to 24.42 crore shares of the company at Rs 236 per share from its public shareholders.
This follows Manappuram Finance’s announcement earlier this month that its subsidiaries Asirvad Micro Finance and Manappuram Home Finance have received approvals from the Reserve Bank of India for indirect change in control and management of the respective companies by Bain Capital. This marked the final set of approvals for the Manappuram-Bain Capital deal, amounting to Rs 4,385 crore.
The global private investment firm last month received RBI’s approval for acquiring up to 41.66% in Manappuram and joint control of the company. The acquisition is being done through Bain’s affiliates BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd.
After the completion of the transaction and the open offer, Bain Capital will be classified as a promoter of Manappuram and will jointly control the company along with the existing promoters.
The respective boards of Manappuram and its subsidiaries will be reconstituted and will include Bain Capital’s nominee directors, in line with the definitive agreements.
Manappuram Chairman VP Nandakumar, along with his family members, held 35.25% in the company as promoters at the end of the December quarter, and they would retain 28.9% after the completion of the deal.The shares of the company gained 7% to trade at Rs 269.35 apiece, before paring some gains. The stock was trading around 4% higher at Rs 262.55 apiece, as seen at 1.15 pm. The stock has fallen nearly 3% in the past one week, and around 12% in the past one month.
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