Manappuram Finance CEO Takes Medical Leave Amid Bain Capital Deal
Shares of Manappuram Finance Ltd. Experienced a decline on Thursday, February 26, 2026, following the announcement that Chief Executive Officer Deepak Reddy will be taking medical leave. The news coincides with the final approval received from the Reserve Bank of India (RBI) for Bain Capital’s proposed acquisition of a significant stake in the company.
CEO’s Medical Leave Details
According to an exchange filing, Deepak Reddy has initiated a leave of absence starting February 25, 2026, to seek medical treatment overseas. The anticipated duration of his leave is between 90 and 120 days, contingent upon the progress of his treatment. This disclosure was made in compliance with SEBI regulations, as Reddy is identified as Key Managerial Personnel.
Bain Capital’s Investment and Control
Manappuram Finance recently secured final approval from the RBI for Bain Capital’s investment. Bain Capital is set to acquire up to a 41.66% stake and joint control in the company. Following the transaction, Bain Capital will be classified as a promoter and will jointly control the gold loan financier.
The RBI’s approval is subject to specific conditions. Any future acquisition by Bain Capital that results in a stake exceeding 26% after one year (excluding warrant conversions) will require prior approval from the central bank. The investors must present an RBI-compliant plan to prevent obtaining majority control in more than one Non-Banking Financial Company (NBFC) or housing finance company within their group.
Investment Details
Under agreements finalized in March 2025, Bain Capital committed to invest approximately ₹4,385 crore for an 18% stake through a preferential allotment of shares at ₹236 apiece. The investment will be channeled through its affiliates, BC Asia Investment XXV and BC Asia Investments XIV. This deal will also trigger a mandatory open offer to acquire an additional 26% stake from public shareholders at ₹236 per share.
Nomination Rights
Bain Capital will have the right to nominate members to the executive management team, including the CEO and other key managerial personnel, for Manappuram Finance and its group companies. The firm will also have two nominee directors on the reconstituted board of Manappuram.
Shares of Manappuram Finance settled at Rs 293.10 per share, 1.2 per cent lower than its previous close.