India's Manappuram Finance has received final approval from the Reserve Bank of India for Bain Capital to acquire joint control and up to 41.66% of the company's equity and convertible instruments, the non‑bank lender said on Saturday.
The RBI clearance is in relation to agreements signed in March, under which Bain committed to invest about 43.85 billion Indian rupees ($484.40 million) for an 18% fully diluted stake priced at 236 rupees apiece.
Bain Capital's stake will range between 18% and 41.7%, depending on open‑offer acceptance, while existing promoters will hold 28.9% on a fully diluted basis, the company said in a statement.
The RBI raised concerns last month regarding the deal since Bain already holds a controlling interest in another Indian lender.
Manappuram, which extends loans in which gold is used as collateral, has about a 315 billion rupee loan book, focused on fast-growing gold loans.
