Manappuram Finance Limited has informed the Exchange about General Updates
MANAPPURAM · price
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Manappuram Finance has completed a large preferential issue to two Bain Capital-affiliated entities (BC Asia Investments XXV and XIV). The company allotted 9.29 crore equity shares at ₹236 per share to Investor 1, raising about ₹2,192.47 crore. Separately, it allotted 9.29 crore warrants (each convertible into 1 equity share at ₹236) to Investor 2, also aggregating ₹2,192.47 crore. The warrant holder has paid 25% upfront (₹548.12 crore), with the balance payable upon exercise of the warrants between 4 and 18 months from allotment. RBI and other regulatory approvals for the company and its subsidiaries (Asirvad Micro Finance and Manappuram Home Finance) have already been received.
This ₹4,385 crore preferential infusion from a marquee global private equity investor (Bain Capital) meaningfully strengthens Manappuram's capital base. However, existing shareholders face dilution risk — 9.29 crore new shares are issued immediately and another 9.29 crore could be added once warrants are converted, roughly over the next 18 months.