Cyril Amarchand Mangaldas has acted for US-based asset manager, Bain Capital, on its proposed acquisition of joint control in Manappuram Finance, a gold loan provider, which was represented by Khaitan & Co.
This move marks Bain Capital's shift from its traditional legal counsel, AZB & Partners, to CAM for Indian transactions. KKR made a similar switch earlier this year, by engaging CAM for its $400 million HCG acquisition. These developments indicate that major corporations are exploring new legal partnerships to enhance service offerings and achieve cost efficiencies.
Bain Capital plans to invest approximately $508 million for an 18 percent stake at $2.74 (Rs 236) per share and has initiated an open offer for an additional 26 percent of Manappuram Finance, potentially increasing its total stake to 41.7 percent.
This investment coincides with the rising gold prices, making gold loans more appealing in India, the world's second-biggest gold consumer. According to PwC, the Indian gold loan market is expected to reach around $164.2 billion by fiscal 2029, with a five-year compound annual growth rate of 14.85 percent.
The transaction, expected to close by the second or third quarter of the next financial year, will see Bain Capital being classified as a co-promoter of the company post-investment alongside existing promoters, including managing director and chief executive V P Nandakumar, who will retain a 28.9 percent stake.
The CAM team for Bain was led by managing partner Cyril Shroff, senior partner L. Viswanathan and partner Anchal Dhir, with support from principal associate Shubham Rastogi, senior associates Surabhi Saboo, Aman Borthakur and Varun Kannan, and associate Swini Khara.
Partners Jian Johnson (regulatory due diligence), Arun Prabhu (technology), Swati Sharma (IP), Abhijeet Das (financial due diligence), Abe Abraham (employment), Avaantika Kakkar (competition) and Gazal Rawal (regulatory) assisted on the deal.
Khaitan & Co's core team on this deal included senior partner Haigreve Khaitan, partners Vivek Sriram, Gautam Suseel, Abhishek Dadoo, counsel Gaurav Malhotra, principal associate Rahul Chandramouli, senior associates Atul Narayan, Vaasavi Sashiraman, and Vismita Gahlot, and associates Aanchal Kapoor, Partha Mansukhani, Vishnu Vasudevan, Gaurang Mansinghka, Niyati Karia and Shubhra Wadhawan, with assistance on antitrust issues from partner Anshuman Sakle.
