Manappuram Finance Shares Decline Over SEBI’s IPO Suspension for Asirvad Microfinance Arm

Manappuram Finance Shares Decline Over SEBI's IPO Suspension for Asirvad Microfinance Arm

VoM News Desk | January 10, 2024 | 11:13 AM IST | Breaking News | Follow on Google News

Manappuram Finance Shares Decline Over SEBI’s IPO Suspension for Asirvad Microfinance Arm

Manappuram Finance Shares Decline Over SEBI’s IPO Suspension for Asirvad Microfinance Arm

Manappuram Finance witnessed a stark decline of over 7 percent in its shares on Wednesday, triggered by reports indicating the Securities and Exchange Board of India’s (SEBI) suspension of the IPO of its subsidiary, Asirvad Microfinance.

The stock plunged by as much as 7.4 percent to ₹163.40 in intra-day trading. This decline positions it over 10 percent away from its recent 52-week high of ₹182.10, reached on January 9, 2024. Despite this fall, the stock has shown significant growth, rising over 61 percent from its 52-week low of ₹101.15 recorded on February 27, 2023.

Over the past year, the stock has shown a substantial increase of almost 46 percent. However, it has witnessed a decline of over 3 percent in the month of January.

Asirvad Microfinance, acquired by Manappuram in 2015, filed a Draft Red Herring Prospectus (DHRP) with SEBI on October 5 for an IPO of equity shares at a face value of ₹10 each, involving a fresh issue of up to ₹1,500 crore.

Established in 2008 by SV Raja Vaidyanathan, Asirvad Microfinance was bought over by Manappuram for ₹48.63 crore. Currently, Manappuram holds a majority stake of 95 percent, with the remaining 5 percent owned by founder Vaidyanathan.

In the September quarter, Manappuram reported a consolidated net profit of ₹560.65 crore, marking a 37 percent growth compared to the year-ago period. The non-banking financial company’s (NBFC) net interest income (NII) rose by 25 percent to ₹1,468 crore, emphasizing its robust performance.

Manappuram Finance, primarily engaged in gold loan NBFC services, extends retail credit products and financial services across India, focusing on loans against household gold jewelry, microfinance, and other financial products catering to low-income segments in rural and semi-urban areas. Operating across 28 states and 4 Union Territories, the company has established itself in diverse customer segments.

Founded in 1949 as Manappuram General Finance and Leasing Limited, it rebranded as Manappuram Finance Limited in 2011 and is headquartered in Thrissur, India.

VoM News Desk

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