Gold Financier’s Stock Soars 2.51 per cent on Media Report of Bain Capital’s Potential Controlling Stake Acquisition
Media Reports Indicate the Deal Follows RBI’s Recent Lifting of Curbs on Asirwad Micro Finance
The stock price of Manappuram Finance surged in response to media reports suggesting that Bain Capital is nearing an agreement with the promoters of Kerala-based gold loan provider Manappuram Finance to acquire a controlling stake. On February 24, the stock jumped 2.51 per cent to Rs 209. The reported deal follows the Reserve Bank of India’s decision a month ago to lift restrictions on Asirwad Micro Finance, a subsidiary of the non-bank lender.
Addressing these reports, Manappuram Finance Ltd. clarified that no material information necessitates disclosure under SEBI’s Listing Regulations.
In a letter submitted to the BSE and NSE on February 24, 2025, the company continuously evaluates various strategic and growth opportunities."We acknowledge the referenced media report and confirm that, as of now, there is no information that requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations)," the company stated in response to the media speculation. Further, the company emphasized, "As part of our business strategy, we regularly explore strategic and growth opportunities in the best interests of our stakeholders. Given that our shares are actively traded on stock exchanges, we are not in a position to comment on the movement in our share price."
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The promoter group, led by Managing Director and Chief Executive Officer Nandakumar VP, holds a 35.35 per cent stake in the company. Based on Friday’s closing price, Manappuram Finance has a market capitalisation of Rs 17,000 crore. Earlier this month, the company reported weaker-than-expected earnings for the December quarter, primarily due to challenges in its microfinance business. The consolidated net profit fell to Rs 282 crore in Q3FY25, while bad loans and provisions from its microfinance segment surged fourfold to Rs 473 crore. Despite these challenges, Manappuram’s gold loan portfolio, which constitutes 75 per cent of its total revenue, recorded a 17 per cent growth, benefiting from record-high gold prices.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.