India's competition regulator approves Bain Capital's takeover of stake in Manappuram Finance

The Competition Commission of India has approved Bain Capital's proposed acquisition of a stake in Kerala-headquartered Manappuram Finance Ltd (MFL). 

"CCI approves proposed combination involving acquisition in Manappuram Finance Ltd and Manappuram Asset Finance Ltd by Bain Capital." the regulator said in a post on X. The US based private investment firm will acquire stake in Manappuram through its two affiliates, BC Asia Investments XXV and BC Asia Investments XIV. 

"The proposed transaction involves four phases, where BC Asia Investments XXV will subscribe to 9.29 crore fully paid-up equity shares of MFL through private placement and preferential allotment," CCI said. The total value of this transaction amounts to ₹2,192 crore, according to Manappuram. 

The competition regulator added that BC Asia Investments XIV will subscribe to another 9.29 crore warrants of MFL, which can be converted into shares at any time between 4 to 18 months from the date they are issued. The total value of this is ₹2,192 crore. 

Moreover, "BC Asia Investments XXV and its persons acting in concert are also offering to purchase up to 24.42 crore fully paid-up equity shares through an open offer, representing 26 per cent of the expanded voting share capital from public shareholders of Manappuram Finance," the CCI said. 

Additionally, CCI has also approved the acquisition of Manappuram Asset Finance Ltd by Manappuram Finance Ltd.  

The shares of the company were down by 0.79 per cent at ₹270.74 as of 12:10 pm.