Manappuram Finance share price rallies 4.5% after clarification on Bain Capital deal reports

Manappuram Finance share price saw renewed buying in Monday’s session on January 12, surging 4.5% to hit the day’s high of ₹298.70 apiece after the gold loan financier issued a clarification on media reports suggesting that the Reserve Bank of India (RBI) had delayed the company’s deal with Bain Capital.

The company’s shares had crashed nearly 8% on Friday after news agency Reuters reported, citing sources, that the RBI had raised objections to Bain Capital’s plans to acquire a controlling stake in Manappuram Finance.

Following this, the exchanges sought clarification on January 9 regarding the media reports. On the same day, the company responded, stating that “The media report is denied, factually incorrect, and speculative in nature.”

The company said it has provided regular updates regarding the proposed investment by BC Asia Investments XIV Limited and BC Asia Investments XXV Limited in the company, as well as the acquisition of joint control in the company and its subsidiaries, including Asirvad Micro Finance Limited and Manappuram Home Finance Limited.

It further said that it has also provided regular updates regarding the RBI’s approval for a change in management in the company and its subsidiaries.

“In respect of the change of control application filed with the RBI in relation to the proposed transaction, the necessary filings (including responses to clarifications sought by the RBI) have been made, and the final approval of the RBI for the proposed transaction is pending. We will keep the stock exchanges duly updated in this regard,” the company said in its regulatory filing dated January 9.

Manappuram Finance share price trend

Apart from the recent company-specific developments, sharp volatility in gold prices has also appeared to impact the stock’s performance, as it is down 4.5% so far in January. The shares closed 2025 with gains of 65%, coinciding with a record-breaking rally in the yellow metal, marking the third straight year of positive performance.

Harshal Dasani, Business Head, INVasset PMS, said, “Gold had seen an extended upside over the past year, which significantly boosted collateral values and loan growth for gold-focused lenders.”

He added that demand for gold loans continues to remain strong, asset quality is stable, and balance sheets are well cushioned due to conservative loan-to-value norms. Importantly, elevated gold prices over the past year have structurally strengthened the collateral base of the sector.

“The medium-term outlook for gold-loan NBFCs remains positive, with temporary volatility offering selective opportunities rather than signalling a trend reversal,” he said.

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