Manappuram Finance said on Thursday investment firm Bain Capital would pick up an 18% stake in the gold loan provider for 43.85 billion rupees ($508 million).
Bain Capital will make the investment through subscription to shares and warrants at 236 rupees apiece, implying a 30% premium over the six-month average trading price of Manappuram Finance.
The deal will trigger a mandatory open offer for the purchase of an additional 26% stake in the company from existing shareholders, it said.
Based on open offer subscription, Bain Capital’s stake post-investment will vary between 18% and 41.7%.
Separately, Manappuram’s microfinance arm Asirvad Micro Finance said it would withdraw its initial public offering draft papers due to uncertain market conditions.
