Home / Business and Economy / RBI Halts Bain Capital's Manappuram Takeover Bid
RBI Halts Bain Capital's Manappuram Takeover Bid
9 Jan
Summary
- RBI objects to Bain Capital's controlling stake in Manappuram Finance.
- Manappuram Finance shares plunged 10% amid high trading volumes.
- Bain Capital seeks to address RBI concerns by divesting another firm.
Manappuram Finance experienced a sharp 10% drop in its share price, reaching a low of ₹278.55, following a Reuters report detailing the Reserve Bank of India's objections to Bain Capital's proposed acquisition of a controlling stake. The RBI has expressed reservations, citing Bain's existing controlling interest in another Indian lender, according to sources familiar with the matter.
Bain Capital, which announced its investment plan last March to acquire an 18% stake for approximately ₹44 billion, followed by an open offer for an additional 26%, is now reportedly seeking to resolve these concerns. The US firm is exploring a phased divestment from Tyger Capital, a smaller firm it acquired a significant stake in during 2023.
The significant sell-off was accompanied by high trading volumes on the stock exchange, with over 2.5 crore shares changing hands. Both Manappuram Finance and the RBI have not yet responded to requests for comment regarding the developing situation.
