Overview
- Reuters reports the RBI has raised objections because Bain already controls Tyger Capital, formerly Adani Capital, where it owns 93% via its Special Situations fund.
- Under the plan, Bain would buy 18% of Manappuram and then launch an open offer for another 26% through BC Asia Investments XXV and XIV.
- Manappuram shares fell as much as 10% intraday on the news before trimming losses to close about 5% lower.
- Bain previously secured approvals from India’s market regulator and the competition commission, but RBI clearance is required for large stakes in banks and non-bank lenders.
- Bain is exploring a phased divestment of its Tyger holding to address the RBI’s concern, and sources say its argument that separate funds manage the two investments may not persuade the regulator.