Manappuram Finance Rallies 5% on Deal Clarity, Beats Market

BANKINGFINANCE

Overview

Manappuram Finance shares jumped 5% in heavy trading, defying a weak market. The company officially denied media reports suggesting delays in its proposed Bain Capital deal, clarifying that while final approval is pending, all necessary regulatory filings are complete. This reassurance, coupled with strong Q2 results showing a 64% profit jump and robust gold loan AUM growth, boosted investor confidence.

Shares Rally on Deal Reassurance

Manappuram Finance shares surged 5% to ₹298.70 on Monday's intraday trade, driven by significant trading volumes amidst a broader market decline. The gold finance company's stock price saw a notable uptick following its decisive denial of media speculation regarding delays in its proposed transaction with Bain Capital.

Regulatory Update and Deal Context

The company clarified that reports suggesting delays were factually incorrect. Manappuram Finance confirmed receipt of Reserve Bank of India (RBI) approvals for management changes in its subsidiaries and has completed all required regulatory filings. The final transaction approval from the RBI remains pending. In March 2025, Bain Capital agreed to acquire joint control through affiliates, partnering with existing promoters to support the company's expansion and operational enhancements.

Strong Quarterly Performance

Manappuram Finance reported a consolidated net profit of ₹217 crore for the second quarter of FY26 (July-September), a substantial increase from ₹132 crore in Q1FY26. This jump was partly attributed to reduced losses in its microfinance subsidiaries. Consolidated assets under management (AUM) reached ₹45,789 crore as of September 30, 2025, marking a 3.4% quarter-on-quarter growth. Notably, gold loan AUM grew 29.3% year-on-year to ₹31,505 crore, now constituting 69% of the company's total AUM.

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