Manappuram Finance shares at 52-week high as subsidiary likely to launch IPO
Kerala-based subsidiary of Manappuram Finance set to go public to raise Rs 1,500 crore, says report
- Jul 26, 2023,
- Updated Jul 26, 2023 6:00 PM IST
Kerala-based gold loan provider, Manappuram Finance's shares hit 52-week high on Wednesday on report that its subsidiary, Asirvad Microfinance, is reportedly working on an initial public offering (IPO) to raise approximately Rs 1,500 crore
The firm has engaged three investment banks, including JM Financial, Nomura, and Kotak Mahindra Capital for the IPO, reported Moneycontrol.
The decision to go public comes after the successful acquisition of a significant majority stake in the Chennai-based micro-finance firm by Manappuram Finance in February 2015, as part of its diversification strategy.
On Wednesday, Manappuram Finance's shares closed nearly 4% higher at Rs 135.10, with the 52-week high being 135.95.
The IPO is expected to be a pure primary issuance of shares, and Asirvad Microfinance is keen to capitalise on the favourable regulatory environment for the micro-finance sector and the positive outlook from analysts. The recent impressive market debut of Uttkarsh Small Finance Bank has further bolstered their sentiment, driving them to file the draft red herring prospectus (DRHP) with SEBI by September.
Asirvad Microfinance aims to expand its book size and demonstrate independent growth beyond its parent company. The IPO is set to offer an opportunity for the firm to raise capital and tap into the buoyant capital markets.
The micro-finance firm's FY22-23 annual report reveals an impressive AUM of Rs 10,040.89 crore and a PAT of Rs 218.13 crore. With 3.2 million borrowers and a pan India presence, the company offers micro-finance loans to women from poor and lower-income households, along with MSME loans and gold loans.
In May, the Enforcement Directorate conducted searches at multiple premises linked to non-banking finance company Manappuram Finance in Kerala as part of a money laundering investigation against it.
The raids were undertaken to gather evidences related to allegations of collecting public deposits worth over Rs 150 crore by the company in contravention of Reserve Bank of India (RBI) guidelines.
Also Watch | I-T Notice: 7 reasons why you can get a notice from Income Tax Department
Kerala-based gold loan provider, Manappuram Finance's shares hit 52-week high on Wednesday on report that its subsidiary, Asirvad Microfinance, is reportedly working on an initial public offering (IPO) to raise approximately Rs 1,500 crore
The firm has engaged three investment banks, including JM Financial, Nomura, and Kotak Mahindra Capital for the IPO, reported Moneycontrol.
The decision to go public comes after the successful acquisition of a significant majority stake in the Chennai-based micro-finance firm by Manappuram Finance in February 2015, as part of its diversification strategy.
On Wednesday, Manappuram Finance's shares closed nearly 4% higher at Rs 135.10, with the 52-week high being 135.95.
The IPO is expected to be a pure primary issuance of shares, and Asirvad Microfinance is keen to capitalise on the favourable regulatory environment for the micro-finance sector and the positive outlook from analysts. The recent impressive market debut of Uttkarsh Small Finance Bank has further bolstered their sentiment, driving them to file the draft red herring prospectus (DRHP) with SEBI by September.
Asirvad Microfinance aims to expand its book size and demonstrate independent growth beyond its parent company. The IPO is set to offer an opportunity for the firm to raise capital and tap into the buoyant capital markets.
The micro-finance firm's FY22-23 annual report reveals an impressive AUM of Rs 10,040.89 crore and a PAT of Rs 218.13 crore. With 3.2 million borrowers and a pan India presence, the company offers micro-finance loans to women from poor and lower-income households, along with MSME loans and gold loans.
In May, the Enforcement Directorate conducted searches at multiple premises linked to non-banking finance company Manappuram Finance in Kerala as part of a money laundering investigation against it.
The raids were undertaken to gather evidences related to allegations of collecting public deposits worth over Rs 150 crore by the company in contravention of Reserve Bank of India (RBI) guidelines.
Also Watch | I-T Notice: 7 reasons why you can get a notice from Income Tax Department