Manappuram Finance Shares Soar 6%; Hits Upper Circuit After Bain Capital’s Acquisition Proposal
Manappuram Finance, one of the biggest NBFCs in the country, saw its shares soar in the intraday trade on Friday, March 21. This came to pass after the company announced that American investment giant Bain Capital said that it would acquire an 18.6 per cent stake in the gold loan finance company.
Bain Capital Looks To Acquire Stakes
Bain Capital intends to do this through a primary infusion and secondary sale. This major investment deal in one of the biggest gold loan companies includes a mandatory open offer.
This could in all likelihood potentially increase Bain Capital’s stake to 41.7 per cent.
Currently, the deal is subject to approval from CCI.
In an exchange filing, the company said, “With respect to the captioned subject, an Open Offer is being made for acquisition of up to 24,42,27,387 fully paid-up equity shares of face value of INR 2/- (Indian Rupees Two only) each (“Equity Shares”) representing 26.00 per cent of the Expanded Voting Share Capital of Target Company from the Public Shareholders of the Target Company at a price of INR 236/- per Equity Share by BC Asia Investments XXV Limited (“Acquirer”), together with BC Asia Investments XIV Limited (“PAC 1”).
BC Asia Investments XXIV Limited (“PAC 2”), BC Asia Investments XXVI Limited (“PAC 3”), BC Asia Investments XXI Limited (“PAC 4”), Bain Capital Asia Fund V L.P. (“PAC 5”), BC Asia V CTB Investors, L.P. (“PAC 6”), and BC Asia V Private Investors, L.P. (“PAC 7”) (together, the “PACs”), in their capacity as persons acting in concert with the Acquirer for the purpose of the Open Offer.”
Manappuram Shares Surge
When we take a look at the company shares, and their progress on Friday, the value of Manapurram rose with major gains.
After opening at Rs 226.00 per share, higher than the previous day’s closing of Rs 217.50 per share. Thereafter the company shares surged further as the day progressed further.
At the time of writing, the shares of Manappuram Finance rose by a massive 6.03 per cent or Rs 13.11. This took the overall value of the company shares up to Rs 230.61 per share.
In the bargain, the company shares hit its 52 week-high of Rs 230.94 per share.
