Manappuram Finance share price falls over 7% as SEBI halts Aam Ashirvad Microfinance IPO

Manappuram Finance’s share price fell over 7% on Wednesday after market regulator SEBI called off the IPO of its unit Ashirvad Microfinance, according to media reports.

Stock prices fell by up to 7.4% INRToday’s intraday trading is 163.40. It is more than 10% off its 52-week high. INR182.10 dated January 9, 2024. Meanwhile, the stock is up more than 61% from its 52-week low. INR101.15, hit February 27, 2023.

The stock has risen about 46% over the past year, but is down more than 3% so far in January.

Ashirvad Micro Finance, a subsidiary of Manappuram Finance, filed its Red Herring Draft 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 the shares will be made at par value. INR10 books each, up to the latest issue INR150 billion yen, according to the exchange’s upload.

Founded by SV Raja Vaidyanathan in 2008, Asirvad was taken over by Manappuram in February 2015. INR48.63 billion. The company, led by vice president Nandakumar, initially bought a 71 percent stake, which was later increased to 95 percent, with founder Vaidyanathan owning the rest.

In the September quarter, Manappuram reported consolidated net profit. INR560.65 million in the second quarter of the fiscal year 2023-24 (Q2 FY24), registering a growth of 37 per cent compared to the previous year. INRIn the same period last year, it was $409.5 million. Then, net profit increased by 12.5% ​​compared to the previous year. INRFor the quarter ending June 2023, it was reported at 4980.2 billion yen.

The net interest income (NII) of non-banking financial companies (NBFCs) is INR146.8 billion, 25% higher compared to INR116.8 billion yen was reported in the second quarter of 2023.

Manappuram Finance Limited is a gold loan non-banking financial company providing personal credit products and financial services in India. We provide loans using used household gold jewelry as collateral. Gold Loans and Online Gold Loans. Microfinance loans and other financial services to low-income groups in rural and semi-urban areas. The company serves retail, microfinance, small business, and commercial customers. He operates branches in 28 states and 4 union territories. The company was previously known as Manappuram General Finance and Leasing Limited, but in 2011 it was renamed to Manappuram Finance Limited. Manappuram Finance Limited was founded in 1949 and is based in Thrissur, India.