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Indian gold loan provider Manappuram hits record high as Bain Capital plans stake buy


Published on 2025-03-21 21:40:53 - Reuters
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  • Shares of India's Manappuram Finance jumped 6% on Friday after analysts said that Bain Capital's plans to buy an 18% stake and jointly control the gold loan provider will help ease its management succession plans.

Manappuram Finance Ltd., an Indian gold loan provider, saw its shares surge to a record high following reports that Bain Capital, a U.S. private equity firm, is in discussions to acquire a significant stake in the company. The potential investment could value Manappuram at approximately $4.1 billion. This move by Bain Capital is part of a broader trend where private equity firms are increasingly investing in India's non-banking financial companies (NBFCs) to capitalize on the growing demand for credit in the country. Manappuram, which primarily offers loans against gold, has been expanding its services to include microfinance, vehicle finance, and housing loans, thereby diversifying its portfolio. The news of the stake acquisition has led to a positive market response, reflecting investor confidence in Manappuram's growth prospects and the strategic value of its business model in the Indian financial landscape.

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