Shares of Manappuram Finance shed more than 7 percent on Wednesday after market regulator SEBI halted the IPO of its arm Asirvad Microfinance, according to media reports.
The stock fell as much as 7.4 percent to ₹163.40 in intraday deals today. It is now more than 10 percent away from its 52-week high of ₹182.10, hit on January 9, 2024. Meanwhile, it advanced more than 61 percent from its 52-week low of ₹101.15, hit February 27, 2023.
In the last 1 year, the stock has advanced nearly 46 percent and has lost more than 3 percent in January so far.
Asirvad Micro Finance, a subsidiary of Manappuram Finance filed a Draft Red Herring Prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) on October 5, the company informed the exchanges. The proposed initial public offering (IPO) of equity shares would be undertaken at a face value of ₹10 each, consisting of a fresh number up to ₹1,500 crore, according to the exchange upload.
Founded in 2008 by SV Raja Vaidyanathan, Asirvad was taken over by Manappuram in February 2015 for ₹48.63 crores. The company headed by VP Nandakumar first bought a 71 percent stake, which was later increased to 95 percent and the rest is with the founder Vaidyanathan.
In the September quarter, Manappuram reported a consolidated net profit of ₹560.65 crore in the second quarter of the fiscal year 2023-24 (Q2FY24), marking a growth of 37 percent compared to ₹409.5 crore clocked in the year-ago period. Sequentially, the net profit increased by 12.5 percent, compared to ₹498.02 crore reported in the quarter ending June 2023.
The net interest income (NII) of the non-banking finance company (NBFC) increased to ₹1,468 crore, higher by 25 percent in contrast ₹1,168 crore reported in Q2FY23.
Manappuram Finance Limited, a gold loan non-banking finance company, provides retail credit products and financial services in India. It offers loans against the security of used domestic gold jewelry; gold loans and online gold loans; microfinance loans and other financial services to poor populations in rural and semi-urban areas. The company serves retail, microfinance, small and medium enterprises, and business clients. It operates branches in 28 states and 4 Union Territories. The company was formerly known as Manappuram General Finance and Leasing Limited and changed its name to Manappuram Finance Limited in 2011. Manappuram Finance Limited was founded in 1949 and is based in Thrissur, India.
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Published: 10 Jan 2024, 10:25 IST