Manappuram Finance shares tank 10% on report of RBI objection to Bain deal

Shares of Manappuram Finance Ltd. fell as much as 10% on Friday, January 9, after Reuters reported citing sources that the Reserve Bank of India has raised objections to Bain Capital's plans to acquire a controlling stake in the company.

The report goes on to state that Bain is exploring a phased divestment in India's Tyger Capital to address concerns on the Manappuram deal.

CNBC-TV18 has not independently verified the veracity of this story.

In March this year, Manappuram Finance had announced a ₹4,385 crore investment with Bain Capital Asia, through which, it was supposed to acquire an 18% stake through the preferential allotment of equity shares and warrants.

Bain is supposed to be classified as the joint promoter alongside existing promoters VP Nandakumar and Sushama Nandakumar following the completion of the transaction and the open offer.

Bain Capital is supposed to acquire 9.29 crore equity shares at ₹236 per share through its investment arm, BC Asia Investments XXV Limited. An equal number of warrants will be issued at the same price to BC Asia Investments XIV Limited, with each warrant convertible into one equity share.

Shares of Manappuram Finance are now trading 8% lower after the initial sharp fall at ₹284.8.

To be updated with more details.