Bain Capital, through its affiliate BC Asia Investments XXV Limited and associated PACs, has announced an open offer to acquire 26% of Manappuram Finance Ltd’s expanded voting share capital. This is following a strategic preferential allotment and shareholders’ agreement that grants Bain Capital effective control and promoter status in the company.
Key Offer Details:
- Offer Size: 24.42 crore shares (26% stake)
- Offer Price: ₹236 per share (Cash)
- Total Consideration: ₹5,763.76 crore (assuming full acceptance)
- Open Offer Trigger: Preferential issue of 9.29 crore shares to Bain at ₹236/share.
- Acquirer’s Post-Deal Holding (Max): Up to 35.89% assuming full acceptance in open offer.
- Transaction Type: Mandatory Open Offer (SEBI SAST Regulations Compliance)
Statutory Approvals Pending:
- RBI, CCI, IRDAI, SEBI, and US SEC clearance for U.S. shareholders.
I
mpact on Share Market:
- Positive Sentiment Expected: Entry of a reputed global private equity player (Bain Capital) signals confidence in Manappuram’s growth potential, especially in NBFC and microfinance sectors.
- Stock Price Reaction: Likely upward movement towards the offer price of ₹236, especially if the market price is below it.
- Volume Surge: Anticipate higher trading volumes due to investor interest in arbitrage and long-term prospects.
- Long-Term Outlook: Strategic partnership may enhance governance, capital infusion, and expansion capabilities.
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