A New Player in India's Loan Game

Bain Capital is making a significant entrance into the Indian lending market. The company has received approval from the Reserve Bank of India (RBI) to acquire a substantial stake in Manappuram Finance.

The Deal

• Investment: Bain is investing approximately 43.85 billion rupees for an 18% stake.
• Potential Increase: Bain's stake could rise to 41.7%, while the current promoters will retain around 28.9%.

Manappuram Finance

• Specialization: Known for its gold-backed loans.
• Loan Book: Currently valued at around 315 billion rupees, with rapid growth.

RBI Concerns

The RBI initially had reservations about Bain's increasing control over the Indian lending market, as Bain already controls another Indian lender. However, the deal has now been approved, paving the way for Bain to make a significant impact in the industry.

This move could potentially reshape the landscape of Manappuram Finance and the broader Indian lending market.