Manappuram Finance Limited has strongly denied media reports suggesting that its proposed deal with Bain Capital-affiliated entities is facing delays due to regulatory concerns. The company issued a clarification on January 09, 2026, calling the reports "factually incorrect and speculative in nature."

Denial of Media Reports

The clarification was issued in response to queries from both NSE and BSE regarding a news item that appeared on Economic Times website on January 09, 2026, titled "Manappuram's Bain deal delayed by Indian regulatory concerns, sources say." The company categorically denied these claims and emphasized that the media report was inaccurate.

Transaction Details and Regulatory Status

The proposed transaction involves BC Asia Investments XIV Limited and BC Asia Investments XXV Limited, collectively referred to as the "Proposed Investors," acquiring joint control of Manappuram Finance Limited along with the existing promoters. The deal also covers the company's subsidiaries, including Asirvad Micro Finance Limited (AMFL) and Manappuram Home Finance Limited (MHFL).

Current Regulatory Position

The company confirmed that it has already received Reserve Bank of India (RBI) approval for change in management for both the parent company and its subsidiaries. Regarding the change of control application filed with RBI for the proposed transaction, Manappuram Finance stated that all necessary filings, including responses to clarifications sought by RBI, have been completed and submitted.

Company's Commitment to Transparency

Manappuram Finance emphasized its commitment to keeping stock exchanges updated on developments related to the proposed transaction. The company stated that final approval from RBI for the proposed transaction is pending and assured that it will provide timely updates as the regulatory process progresses.

The clarification was signed by Company Secretary Manoj Kumar VR and filed under Regulation 30 of SEBI (LODR) Regulations, 2015, which requires listed companies to disclose material information that could impact investor decisions.

Manappuram Finance shares witnessed a sharp decline of 9.9% in intraday trading, dropping to a low of ₹278.45 from the previous closing price of ₹309.35. The gold loan specialist NBFC, which has a market capitalisation of ₹24,208.03 crores, came under pressure following regulatory concerns over a major investment deal.

RBI Raises Concerns Over Bain Capital Deal

According to Reuters reports citing sources, the Reserve Bank of India has raised objections to Bain Capital's plan to acquire a controlling stake in Manappuram Finance. The regulatory pushback has prompted Bain to explore alternative strategies to address the central bank's concerns.

To address the regulator's concerns, Bain is now exploring a phased divestment of its stake in Tyger Capital. These developments could significantly impact the proposed deal structure, under which Bain was expected to be classified as a joint promoter alongside existing promoters VP Nandakumar and Sushama Nandakumar after the transaction and mandatory open offer.

Financial Performance Overview

The company's recent financial performance shows mixed results across different periods. Revenue declined by 13.28% from ₹2,633.00 crores in September 2024 to ₹2,283.00 crores in September 2025. Net profit also experienced a significant decline from ₹572.00 crores to ₹217.00 crores during the same period.

Despite the revenue challenges, the company demonstrates decent capital efficiency with steady returns generated from both overall capital and shareholders' funds. The healthy dividend payout ratio reflects a balanced approach between rewarding shareholders and retaining earnings for future growth.

Operational Performance in Q2 FY2026

In Q2 FY2026, Manappuram Finance reported steady operational performance with consolidated Assets Under Management (AUM) reaching ₹45,789.00 crores, reflecting a 3.40% quarter-on-quarter growth. Operational efficiency also improved, as the OPEX to NIM ratio declined to 52.50%, marking a 1.40% QoQ reduction, underscoring better cost management and margin optimisation.

The AUM composition for Q2 FY2026 shows a strong emphasis on gold loans, which account for 69% of the total portfolio, highlighting the company's core specialisation in this segment. The diversified portfolio also includes microfinance, vehicle and equipment finance, and MSME lending.

Market Impact and Business Profile

Manappuram Finance operates primarily as a gold loan specialist, being a pioneer NBFC in this space. The company has diversified to offer a broad range of financial services beyond its core gold loan business. The regulatory concerns over the Bain Capital deal have created uncertainty around the company's growth plans and strategic direction, contributing to the sharp decline in share price.