By Micah Jonah
January 9, 2026
Mumbai-U.S.-based investment firm Bain Capital is encountering regulatory obstacles in its planned acquisition of a controlling stake in Manappuram Finance, one of India’s prominent non-bank lenders, sources familiar with the matter say.
The Reserve Bank of India (RBI), the country’s central banking authority, has raised concerns about Bain holding controlling interests in multiple financial institutions simultaneously. The firm already owns a majority stake in Tyger Capital, a smaller non-bank lender, prompting regulators to review the potential risks of concentrated control.
Bain’s original plan involves acquiring 18% of Manappuram Finance, followed by an open offer for an additional 26%, which would position the firm as one of the two controlling shareholders. The deal, valued at roughly 44 billion rupees ($488 million) for the initial tranche, received approval from India’s market regulator and the competition commission last year, but RBI clearance is required to finalize the transaction.
Industry insiders say Bain is exploring a phased divestment of its Tyger Capital stake to satisfy the RBI’s concerns. The approach is expected to reduce regulatory friction, allow the company to maintain its investment strategy in India’s fast-growing gold loan sector.
Manappuram Finance manages a loan portfolio of about 315 billion rupees ($3.5 billion), primarily focused on gold-backed lending. In comparison, Tyger Capital holds a smaller portfolio of 73.2 billion rupees, including business, agricultural, and home loans.
Shares of Manappuram fell sharply following news of the RBI’s objections, extending losses for the day. Neither Bain Capital nor Manappuram responded to requests for comment, while the RBI declined to provide an official statement.
The deal comes amid a broader wave of foreign investment in India’s financial sector.
Last year, Japan’s MUFG acquired a 20% stake in Shriram Finance, while Blackstone invested nearly $700 million for a minority share in Federal Bank, highlighting growing international interest in India’s expanding lending market.
