Synopsis:
Manappuram Finance has signed a ₹4,384 crore deal with BC Asia Investments, where BC Asia will buy 9.29 crore shares at ₹236 each, gaining control and becoming a co-promoter.
The shares of an NBFC company, specializing in gold loans and other financial services for the aspiring classes in India, are in focus upon signing a deal worth Rs. 4,384 Cr with BC Asia Investments and a promoter group.
With a market capitalisation of Rs. 22,684.45 crores on Thursday, the shares of Manappuram Finance Ltd jumped upto 0.4 percent, making a high of Rs. 268.25 per share compared to its previous closing price of Rs. 266.95 per share.
Manappuram Finance Limited has informed that the Reserve Bank of India (RBI) has given approval for a change in the management of two of its subsidiary companies – Manappuram Home Finance and Asirvad Micro Finance. This change is part of a bigger deal that was announced earlier in March 2025.
As part of this deal, two foreign investment firms (BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd) agreed to invest a large amount of money (over ₹4,384 crore), in which BC Asia Investments will subscribe to 9.29 crore shares worth Rs 2,192 crore at Rs 236 per share in Manappuram Finance. They will do this by buying new shares and warrants (which can be converted into shares later). This investment will give the firms significant ownership and control in the company, and they will become co-promoters along with the current promoters (the Nandakumar family).
As part of the transaction, a mandatory open offer is being made to public shareholders in compliance with SEBI Takeover Regulations. RBI has now approved the nomination of Ms. Radhika Subramanian, representing the investors, as an Additional Director on the boards of the two subsidiaries.
However, full completion of the transaction and the open offer is still subject to fulfilment of other regulatory conditions, including final RBI approvals for board appointments and the transaction itself.
Financials & Others
The company’s revenue declined by 9.08 percent from Rs. 2,488 crore to Rs. 2,262 crore in Q1FY25-26. Meanwhile, the Net profit declined from Rs. 557 crore to Rs. 132 crore during the same period.
In Q1 FY2026, the Asset Under Management (AUM) of the company is distributed as follows: 65% in gold, 13% in Microfinance Institutions (MFI), 4% in Home Finance Companies (HFC), 10% in Venture Equity Funds (VEF), 1% in onlending, and 7% in Micro, Small, and Medium Enterprises (MSME).
For Q1 FY26, Manappuram Finance reported a 12.6% QoQ growth in consolidated Gold Loan AUM, reaching Rs. 28,802 Cr, with a yield of 20.7%. The standalone Gold Loan AUM increased by 12.3% QoQ, totaling Rs. 27,691 Cr. The Loan-to-Value (LTV) ratio for gold loans remained stable at 57% and the MFI book saw a 23.1% QoQ decline, standing at Rs. 5,542 Cr.
The company maintained a strong ALM position with a cost of borrowing of 9.2% and only 3.4% of borrowing in Commercial Paper (CPs). Cash and Cash Equivalents were Rs. 4,047 Cr, and the Capital Adequacy Ratio (CRAR) stood at 28.7%. Additionally, a quarterly dividend of Rs. 0.50 per share was declared after consistent earnings.
Manappuram Finance Ltd is a major non-banking financial company (NBFC) based in Kerala, India, known mainly for gold loans but now offering a wide range of financial services, including microfinance, housing, vehicle, and SME loans. Established originally in 1949 and incorporated in 1992, it has expanded rapidly, boasting numerous branches across the country.
Written by Sridhar J
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