Manappuram Finance shares surged nearly 4% to ₹298.50 during Monday's trading session after the company issued a clarification dismissing media reports suggesting delays in its proposed deal with Bain Capital due to regulatory concerns. The positive market reaction came as the company addressed investor uncertainties about the high-profile transaction.

Regulatory Clarification Details

In a regulatory filing, Manappuram Finance addressed a news report in The Economic Times dated January 9, 2026, titled "Manappuram's Bain deal delayed by Indian regulatory concerns, sources say". The company clarified that it has been regularly updating stock exchanges regarding the proposed investment by BC Asia Investments XIV Limited and BC Asia Investments XXV Limited, entities affiliated with Bain Capital.

The proposed transaction involves Bain acquiring joint control in Manappuram Finance along with the existing promoters, including control over its subsidiaries Asirvad Micro Finance Limited (AMFL) and Manappuram Home Finance Limited (MHFL).

Approval Status Update

The company provided a comprehensive update on the regulatory approval status:

Regarding the remaining approval related to change of control, Manappuram said all required applications and responses to RBI queries have been duly submitted, and final regulatory approval is currently awaited. The management assured investors that it will promptly inform stock exchanges once the final RBI approval is received.

Stock Performance and Valuation

The clarification helped ease investor concerns, leading to the positive market reaction during the session. Over the past one year, Manappuram Finance stock has gained around 64%, currently trading near its 52-week high of ₹321.60, reflecting strong investor interest.

Current valuation metrics indicate:

These metrics suggest that while the stock has seen significant price appreciation, it is relatively richly valued compared to earnings.

Technical Analysis

From a technical perspective, according to Trendlyne data, the 14-day Relative Strength Index stands at 41.90, which falls within the neutral range. An RSI below 30.00 is considered oversold, while above 70.00 is overbought. The stock also shows bullish momentum on moving averages, as it is currently trading above five of its eight simple moving averages, indicating an overall positive trend in price movement.

The company also confirmed that there is no additional information pending disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015, providing further transparency to investors regarding the transaction status.

Manappuram Finance shares gained on Monday, January 12, following the company's strong denial of media reports regarding Reserve Bank of India objections to its deal with Bain Capital. The recovery came after significant volatility in the previous trading session.

Company Issues Strong Denial

The company issued a categorical denial in an exchange filing on Friday, January 9, stating that "the media report is denied, factually incorrect and speculative in nature." This clarification addressed Reuters reports citing sources that suggested the RBI had raised objections to Bain Capital's plans to acquire a controlling stake in the financial services company.

Stock Performance and Recovery

The stock experienced significant volatility following the initial reports:

Transaction Details and Regulatory Status

Manappuram Finance provided comprehensive details about the ongoing transaction process. The company confirmed it has been providing regular updates regarding the proposed investment by BC Asia Investments XIV Ltd. and BC Asia Investments XXV Ltd. in the firm and acquisition of joint control in the company and its subsidiaries.

The transaction involves multiple entities within the Manappuram group:

• Manappuram Finance Ltd. (parent company)
• Asirvad Micro Finance Ltd. (subsidiary)
• Manappuram Home Finance Ltd. (subsidiary)

Regulatory Approval Process

The company clarified its position on the regulatory approval process, stating that necessary filings have been made with the RBI regarding the change of control application for the proposed transaction. Manappuram Finance emphasized that final approval for the proposed transaction remains pending and committed to keeping stock exchanges updated on developments.

The company has been providing regular updates regarding the RBI's approval for change in management across the firm and its subsidiaries, indicating an ongoing and transparent process with the central bank.

Market Context

Despite the recent volatility, Manappuram Finance shares have demonstrated strong performance over the longer term, with gains of 70.90% in the past year. The company's proactive communication approach in addressing market speculation reflects its commitment to maintaining transparency with investors and regulatory authorities throughout the transaction process.