Alert! Kotak Mahindra Capital has this update on the open offer by Manappuram Finance

The open offer for a 26 percent stake in Manappuram Finance has moved a step forward with the Securities and Exchange Board of India (SEBI) granting its approval. The offer, led by Bain Capital’s acquiring entity BC Asia Investments XXV Limited, now awaits final clearance from the Reserve Bank of India (RBI) before it can proceed further.

Kotak Mahindra Capital Company, which is managing the open offer, shared this update in a regulatory filing.

Details of the Open Offer

The open offer covers up to 24,42,27,387 fully paid-up equity shares with a face value of ₹2 each, representing 26 percent of Manappuram Finance’s expanded voting share capital. Alongside the acquirer, seven other Bain Capital entities are acting as persons in concert to execute this transaction.

Manappuram Finance confirmed that SEBI issued an observation letter for the offer on September 12, 2025. The company highlighted that approvals from the RBI remain outstanding for Manappuram Finance as well as its subsidiaries, Asirvad Micro Finance Limited and Manappuram Home Finance Limited, both of which are part of the underlying transaction.

Tendering Period and Payment Schedule

The filing also informed that the tendering period for the open offer and related formalities will commence no later than 12 working days from the date of receiving the final RBI approval. Payments to all successful public shareholders who tender their shares will be completed within the statutory period of 10 working days from the closure of the tendering period.

In case of any delay in payments, Kotak Mahindra Capital clarified that shareholders whose equity shares have been accepted will receive the offer price along with interest at 10 percent per annum for the delayed period, in compliance with SEBI’s takeover regulations.

Background of the Bain Capital Deal

Earlier this year, in March 2025, Manappuram Finance announced that Bain Capital had invested ₹4,385 crore for an 18 percent stake on a fully diluted basis. This was carried out through a preferential allotment of equity shares and warrants at a price of ₹236 per share. As per regulations, the transaction triggered a mandatory open offer for an additional 26 percent of the company at the same price of ₹236 per share.

The acquiring entity, BC Asia Investments XXV Limited, is part of the Bain Capital Asia Fund V family of funds. Bain Capital is a leading global private investment firm with a track record of significant investments across sectors.

Manappuram Finance Stock Performance

Previous close at ₹294.10, the stock is now 112.5 percent higher than its 52-week low of ₹138.40, hit in October 2024. Meanwhile, the stock touched its 52-week high earlier this month.

The scrip has risen 43 percent in the last 1 year while it has added 25 percent in last 6 months and 10 percent in last 1 month.

Meanwhile, in past 5 years, it has given multibagger returns, surging 100 percent.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.