From Yahoo Finance: 2025-03-21 02:46:00

Shares of India’s Manappuram Finance surged 6% after Bain Capital announced plans to buy an 18% stake, valued at $508 million, and jointly control the gold loan provider. The deal at a 9% premium over Thursday’s closing price will help ease management succession, with founder V.P. Nandakumar becoming non-executive chairman. Bain Capital will have influence on strategic decisions and key role appointments. Jefferies and CLSA see positive outcomes, raising price targets by 14.6% and 20% respectively. The deal, expected to close next financial year, will boost growth in the gold loan business, which contributes 75% of overall revenue. Some funds may be used to offset losses in the microfinance business, as Asirvad Micro Finance withdraws IPO draft papers.

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