NewsOrders & DealsManappuram Finance Shares Jump 5% After Clarification on Bain Capital Acquisition DealManappuram Finance Shares Jump 5% After Clarification on Bain Capital Acquisition Deal
Manappuram Finance shares jumped 5% after the company denied media reports of delays in Bain Capital's acquisition deal, confirming RBI approvals for management changes are in place with final regulatory clearance pending. The transaction involves BC Asia Investments acquiring joint control alongside existing promoters. Despite positive market response, Q2 FY26 results showed revenue declining 13% YoY to ₹2,283 crores and net profit falling 62% to ₹217 crores, though gold loan AUM grew 29.3% YoY.
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Manappuram Finance shares surged nearly 5% during Monday's trading session after the company issued a strong clarification denying media reports about delays in Bain Capital's acquisition deal. The NBFC's stock jumped to ₹295.10 on BSE, representing a gain of over 3% from its previous closing price of ₹285.20, with the company maintaining a market capitalization of ₹24,978 crores.
Company Denies Delay Reports
Through a regulatory filing dated January 9th, Manappuram Finance categorically refuted a media report titled "Manappuram's Bain deal delayed by Indian regulatory concerns," calling it factually incorrect and speculative. The company emphasized that it has been regularly updating stock exchanges about the proposed investment by BC Asia Investments XIV Limited and BC Asia Investments XXV Limited.
| Parameter: | Status |
|---|---|
| RBI Management Change Approval: | Received |
| Change-of-Control Application: | Filed with responses |
| Final Regulatory Approval: | Pending |
| Transaction Structure: | Joint control with existing promoters |
Transaction Details
The acquisition involves BC Asia Investments XIV Limited and BC Asia Investments XXV Limited acquiring joint control alongside the company's existing promoters in Manappuram Finance and its subsidiaries. The deal encompasses key subsidiaries including Asirvad Micro Finance Limited (AMFL) and Manappuram Home Finance Limited (MHFL). The company confirmed that all required submissions, along with responses to RBI's clarifications, have been duly filed.
Financial Performance Overview
Despite the positive market response to the clarification, Manappuram Finance's recent financial results showed mixed performance. The company experienced a significant decline in revenue from operations during Q2 FY26.
| Financial Metric: | Q2 FY26 | Q2 FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹2,283 cr | ₹2,633 cr | -13.3% |
| Net Profit: | ₹217 cr | ₹572 cr | -62.1% |
| Gold Loan AUM: | ₹31,505 cr | ₹24,365 cr | +29.3% |
| Cash & Cash Equivalents: | ₹2,509 cr | - | - |
Business Profile and Growth
Manappuram Finance Limited operates as a Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC-ND-SI) and has been classified as NBFC-ML (Middle layer) by the RBI under Scale Based Regulation. The company provides a comprehensive range of fund-based and fee-based financial services including:
- Gold loans
- Commercial and passenger vehicle financing
- Construction and farm equipment financing
- MSME financing
- Two-wheeler and personal loans
- Foreign exchange services
Despite recent financial challenges, the stock has delivered impressive returns of over 72% in the past year and gained approximately 3% in the last month, reflecting investor confidence in the company's long-term prospects and the potential Bain Capital partnership.
Historical Stock Returns for Manappuram Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.62% | -5.72% | +6.60% | +12.18% | +63.88% | +69.66% |
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