Manappuram Finance’s shares surged 14% to reach a 52-week high after the announcement of Bain Capital acquiring an 18% stake in the NBFC. The stock closed 7.70% higher on the BSE at ₹234.20, hitting a peak of ₹247.55.
Bain Capital will inject ₹4,385 crore through its affiliates BC Asia Investments XXV Ltd and BC Asia Investments XIV Ltd to acquire an 18% stake on a fully diluted basis through preferential allotment of equity and warrants at ₹236 per share, a 30% premium over the six-month average trading price.
Various bullish brokerages have raised their ratings and target prices on Manappuram, boosting investor confidence. Analysts believe that the acquisition marks a significant turning point for Manappuram’s journey.
CLSA has upgraded Manappuram to an outperform rating with a revised target price of ₹270, while DAM Capital has raised the target price to ₹255, maintaining a buy recommendation. Elara Capital has upgraded its rating to accumulate with a target price of ₹250, noting that Bain’s acquisition at a substantial premium reflects confidence in future growth.
Motilal Oswal expects the capital infusion to strengthen Manappuram’s financial position, enhance operational efficiencies, and expand its footprint across various key segments. The brokerage has maintained a neutral rating on the stock with a target price of ₹240.
Jefferies has retained a hold call with an increased target price of ₹235, while Morgan Stanley has kept an equal weight rating with a target price of ₹180.
Overall, the acquisition by Bain Capital has triggered a positive outlook on Manappuram Finance, with analysts emphasizing the need for monitoring execution going forward.
