Manappuram Finance shares gain 3% after clarification on Bain Capital deal reports

Shares of Manappuram Finance Ltd. gained on Monday, January 12, after the company issued a clarification regarding reports of the Reserve Bank of India (RBI) delaying the firm's Bain deal.

"The media report is denied, factually incorrect and speculative in nature," Manappuram Finance said in an exchange filing on Friday, January 9.

The stock had declined as much as 10% last Friday after news agencyReuters reported, citing sources, that the RBI has raised objections to Bain Capital's plans to acquire a controlling stake in Manappuram Finance. The stock recovered from its day's lows but closed the session with losses of over 7%.

Manappuram Finance on Monday said it has provided regular

updates regarding the proposed investment by BC Asia Investments XIV Ltd. and BC Asia Investments XXV Ltd. in the firm and acquisition of joint control in the firm and its subsidiaries. It said it has also provided regular updates regarding the RBI's approval for change in management in the firm and its subsidiaries -- Asirvad Micro Finance Ltd. and Manappuram Home Finance Ltd.

It added that with respect to the change of control application filed with the central bank regarding the proposed transaction, the necessary filings have been made with the RBI. Its final approval for the proposed transaction is pending, Manappuram Finance said, adding that it would keep the stock exchanges updated regarding the same.

Shares of Manappuram Finance Ltd. were up 2.85% at ₹294 apiece around 9.30 am on Monday. The stock has gained 71.5% in the past year.

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