Manappuram Finance shed over 7% as SEBI put arm Asirvad Microfinance IPO in abeyance
Manappuram Finance shed over 7 percent on Wednesday after market regulator SEBI put the IPO of its arm Asirvad Microfinance in abeyance, according to media reports. The stock fell as much as 7.4 percent to ₹163.40 in intra-day deals today. It is now over 10 percent away from its 52-week high of ₹182.10, hit on January 9, 2024.
Meanwhile, it has advanced over 61 percent from its 52-week low of ₹101.15, hit on February 27, 2023. In the last 1 year, the stock has advanced almost 46 percent and lost over 3 percent in January so far. Asirvad Micro Finance, a subsidiary of Manappuram Finance had filed 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 face value of ₹10 each, comprising fresh issue up to ₹1,500 crore, as per the exchange upload. Founded in 2008 by SV Raja Vaidyanathan, Asirvad was taken over by Manappuram in February 2015 for ₹48.63 crore. The V P Nandakumar-led company 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 fiscal year 2023-24 (Q2FY24), marking a growth of 37 percent as compared to ₹409.5 crore clocked in the year-ago period. Sequentially, the net profit increased by 12.5 percent, as compared to ₹498.02 crore reported in the quarter ending June 2023. The net interest income (NII) of the non-banking financial company (NBFC) increased to ₹1,468 crore, higher by 25 percent as against ₹1,168 crore reported in Q2FY23.
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