CCI Clears Bain Capital's Manappuram Finance Stake Acquisition

The Competition Commission of India (CCI) has officially approved Bain Capital’s proposal to acquire a significant stake in Manappuram Finance Ltd (MFL) and Manappuram Asset Finance Ltd (MAFL). This approval marks a critical step in Bain’s entry into India’s financial services space, particularly in the gold loan and MSME segments. The acquisition will be carried out by Bain Capital through its 2 affiliates—BC Asia Investments XXV and BC Asia Investments XIV.

Multi-Phase Transaction Structure Explained

The investment will unfold in 4 stages. Initially, BC Asia Investments XXV will subscribe to 9.29 crore fully paid-up equity shares of Manappuram Finance through private placement and preferential allotment. This significant move automatically triggers a mandatory open offer as per SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) regulations. Once fully executed, Bain could hold as much as 26% of the expanded voting share capital of the company.

CCI Approves for Subsidiary Acquisition 

In addition to its investment in MFL, Bain Capital has also received CCI clearance for the acquisition of Manappuram Asset Finance Ltd (MAFL), a subsidiary that primarily provides gold loans. The parent company, MFL, offers a wider range of financial products, including gold loans, vehicle finance, and MSME lending. The CCI confirmed its approval via an official post on the social media platform X, stating that it had no objections to the proposed combination involving both companies.

Background and Financial Commitment

This development follows Bain Capital’s announcement in March 2025 that it had entered into definitive agreements to acquire joint control in MFL in partnership with its existing promoters. As part of the arrangement, Bain will invest ₹4,385 crore to acquire an 18% stake on a fully diluted basis via a mix of equity shares and warrants. 

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Manappuram Finance Share Price Performance 

As of June 25, 2025, at 11:30 AM, Manappuram Finance share price is trading at ₹272.26 per share, reflecting a gain of 1.05% from the previous closing price. Over the past month, the stock has gained by 17.81%. 

Conclusion

With the CCI’s approval now in place, Bain Capital is set to move forward with its multi-phase investment into Manappuram Finance and its lending arm. The ₹4,385 crore deal reflects the continued interest of global private equity firms in India’s non-banking finance sector, particularly in the gold loan segment. The transaction, now officially cleared, will progress under SEBI’s regulatory framework and could reshape the shareholding structure of Manappuram in the months ahead.

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