India-West News Desk
BOSTON, MA – American private investment firm Bain Capital is on the verge of acquiring a significant stake in Manappuram Finance, one of Kerala’s leading gold loan providers, in a deal valued at approximately $1 billion. If finalized, Bain could own up to 46% of the company, marking a pivotal shift in its ownership structure.
Currently, Manappuram’s CEO and Managing Director, V.P. Nandakumar, and his promoter group hold a 32.25% stake. Bain plans to secure nearly a quarter of the company through a mix of fresh capital infusion via preferential allotment and a stake purchase from the promoters. The investment firm also intends to launch an open offer for an additional 26% stake, potentially increasing its total shareholding to 46%.
Strategic Interest
The negotiations, which began in 2024, saw multiple parties express interest in Manappuram Finance. Bain Capital emerged as the frontrunner, but talks were delayed due to disagreements over the deal structure. Bain was particularly drawn to the company’s gold loan business, which accounts for 55% of its total assets under management. However, the promoters resisted selling only this segment, as it would leave them with less profitable divisions such as microfinance, vehicle finance, and housing loans.
In October last year the Reserve Bank of India also placed restrictions on Manappuram’s microfinance division but has now lifted the ban.
Nandakumar Family
V.P. Nandakumar and his family members may transition into non-executive roles. Nandakumar inherited the business in 1986 following his father’s passing and transformed it from a small pawnbroking and money lending operation in Thrissur into one of India’s largest non-banking financial companies.
Under his leadership, Manappuram Finance has grown into a powerhouse in the gold loan sector, diversifying into other financial services.
