Manappuram Finance Limited has completed a significant preferential allotment of 9,29,01,373 equity shares to BC Asia Investments XXV Limited (‘Investor 1’) and warrants to BC Asia Investments XIV Limited (‘Investor 2’) on March 27, 2026. This transaction, priced at INR 236.00 per unit, results in Investor 1 holding a 9.89% stake in the current equity capital. The move is linked to a larger mandatory open offer triggered by the acquisition terms.
Major Share and Warrant Allotment Completed
Manappuram Finance Limited (the “Target Company”) announced the allotment of securities to two key entities, collectively referred to as the “Investors”, following a Committee of Directors meeting on March 27, 2026.
Investor 1 (BC Asia Investments XXV Limited) was allotted 9,29,01,373 equity shares via Preferential Allotment. At the issue price of INR 236.00 per share, this allotment represents 9.89% of the current equity share capital of the Target Company. Before this acquisition, Investor 1 held 0.00%.
Simultaneously, Investor 2 (BC Asia Investments XIV Limited) was allotted an equal number of 9,29,01,373 warrants at the same price, representing a potential 9.00% stake on a fully diluted basis, assuming full conversion.
Context of Acquisition and Open Offer Trigger
This allotment of Subscription Shares and Subscription Warrants was executed pursuant to the terms of a securities subscription agreement dated March 20, 2025. The agreement also involved the existing promoters, including V. P. Nandakumar and others.
Crucially, this transaction has triggered a mandatory obligation for the Investors and their Persons Acting in Concert (PACs) to launch an open offer to public shareholders. This proposed open offer seeks to acquire up to 24,42,27,387 equity shares, representing 26.00% of the expanded voting share capital.
Post-Acquisition Shareholding Structure
Following the allotment:
- The total holding of the Acquirers and PACs in the current equity share capital stands at 9,29,01,373 shares, representing 9.89%.
- On a fully diluted basis (assuming Investor 2 converts its warrants), the combined holding amounts to 18.00% of the capital.
It was noted that the Subscription Shares and Warrants are currently held in separate demat escrow accounts. Voting rights on these shares can only be exercised by Investor 1 after the completion of the mandated Open Offer, as per regulatory compliance.
Source: BSE
