Bain Capital is finalizing a deal to acquire a majority stake in Manappuram Finance, marking a significant private equity move in India’s financial services sector. 

After months of discussions focused on valuation, the agreement is expected to be executed in two phases, according to sources familiar with the matter.

In the first stage, Bain will acquire 22 percent of Manappuram Finance from promoter VP Nandakumar and his family in an all-cash transaction. The deal is reportedly priced at a 20 percent premium to the company’s 26-week average share price. Following this sale, Nandakumar and his family will retain a 10 percent stake in the company and are expected to take up two non-executive board positions. However, they will withdraw from operational roles once regulatory approvals are secured.

The second phase of the deal will see Bain Capital launching an open offer to increase its stake by an additional 20 percent, in accordance with Sebi regulations. The completion of the transaction is anticipated to take between four to six months, depending on regulatory clearances.

Market sources suggest that an official announcement may come by the end of the week. As of now, both Bain Capital and Manappuram Finance have declined to comment on the transaction.

This acquisition highlights private equity’s growing interest in India’s financial sector, particularly in gold-backed lending, which has seen sustained demand. Bain Capital’s strategic move underscores its confidence in the sector’s long-term potential and its intent to take control of a key player in India’s lending market.