Manappuram Finance has received approval from the Reserve Bank of India (RBI) for a change in management. Effective September 16, 2025, Mr. Rishi Mandawat and Mr. Ashish Kotecha have been appointed as Additional Directors (Non-Executive and Non Independent Directors), nominated by the Investors. This development follows the announcement of a preferential issue and related agreements, impacting company control.
RBI Approval for New Directors
Manappuram Finance has secured the Reserve Bank of India’s (RBI) approval for the appointment of Mr. Rishi Mandawat and Mr. Ashish Kotecha as Additional Directors. The approval was granted September 16, 2025. These appointments are a result of nominations by the Investors following the proposed changes to company structure.
Details of Preferential Issue
The company plans to issue 9,29,01,373 equity shares at a price of INR 236 per share, totaling INR 2192,47,24,028 to BC Asia Investments XXV Limited. Additionally, 9,29,01,373 warrants, each convertible into one equity share at INR 236, will be issued to BC Asia Investments XIV Limited. These warrants can be converted within 18 months from the date of allotment, after an initial 4-month period.
Shareholders Agreement (SHA)
A shareholders’ agreement dated March 20, 2025, has been established among Manappuram Finance, the Investors, Specified Promoter, and Promoter Group. This SHA outlines the management of the company and the inter-se rights and obligations between the parties. Upon closing as dictated by the agreement, the Investors will gain control over Manappuram Finance and will be classified as promoters along with the existing promoters (V.P. Nandakumar and Sushama Nandakumar).
Mandatory Open Offer Details
As a result of the SSA and SHA, Investor 1 (BC Asia Investments XXV Limited), along with Investor 2 (BC Asia Investments XIV Limited), are undertaking a mandatory open offer to the public shareholders of Manappuram Finance. A public announcement was made on March 20, 2025, a detailed public statement was published on March 27, 2025, and a draft letter of offer was filed with SEBI on April 04, 2025.
Source: BSE
