Manappuram Finance Share Price Slumps After SEBI Puts Asirvad Microfinance IPO on Hold


by Sandip Das on 10 January 2024,  4 min read

Manappuram Finance Share Price Slumps After SEBI Puts Asirvad Microfinance IPO on Hold - MyDhanush Blogs by Ashika

Manappuram Finance‘s share price slumped over 7 percent on January 10, 2024. The market regulator SEBI has put the IPO of its arm Asirvad Microfinance in abeyance, according to media reports.

The stock on NSE was trading at Rs 167 per share, declining by 5.41 percent or Rs 9.55.

Manappuram Finance informed the exchanges that Asirvad Micro Finance, its subsidiary, had filed a Draft Red Herring Prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) on October 5.

The exchange upload indicated that they would undertake the proposed initial public offering (IPO) of equity shares at a face value of Rs 10 each. The issue comprises a fresh issue of up to Rs 1,500 crore.

Also read: Lupin, Oracle Financial Services Top 2 Stocks Which Can Fetch up to 13% Return

In the second quarter of fiscal year 2023-24 (Q2FY24), Manappuram reported a consolidated net profit of Rs 560.65 crore. It marked a growth of 37 percent from Rs 409.5 crore in the year-ago period. The net profit also increased by 12.5 percent sequentially from Rs 498.02 crore reported in the quarter ending June 2023.

The non-banking financial company (NBFC) witnessed an increase in net interest income (NII) to Rs 1,468 crore.

Manappuram Finance Limited, a gold loan non-banking financial company, provides retail credit products and financial services in India. It offers loans against the security of used household gold jewelry, gold loans, online gold loans, microfinance loans, and other financial services to low-income populations in rural and semi-urban areas.

The company serves retail, microfinance, small and medium enterprises, and commercial customers. The company laid its foundation in 1949. It operates branches in 28 states and 4 Union Territories and is based in Thrissur. Before its name change to Manappuram Finance Limited in 2011, it operated under the name Manappuram General Finance and Leasing Limited.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

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