Fortune is in no mood to do any favour to the shares of the NBFC, Manappuram Finance, as the shares of the financial firm from Kerala appear to be doldrums.
Manappuram In Decline
RBI has banned Manappuram's subsidiary Asirvad Micro Finance, an MFI, from disbursing any loans in the market; the company shares have been trading with deep cuts.
The ban on the MFI kicked in on October 21.
It is to be noted that Asirvad itself is gearing up for an Initial Public Offering (IPO).
The ban was imposed on Asirvad and three other companies by the central bank in order to stabilise the market. The RBI has been critical of the conduct and approach of NBFCs over the recent past, as their practices have been deemed risky.
The shares of the company have been in decline ever since. In the span of single trading, the stocks of the Thirssur-based company lost more than 10 per cent of their value.
Even two days after the emergence of the report, the exodus from the shares of Manappuram has been persistent and incessant.
In the past month or 30 days of trade, the company shares have lost a colossal 30.78 per cent or Rs 64.19.
When we look at the performance of the company shares in today's, i.e Tuesday, October 22 trade, the Manappuram stocks have only expanded their losses
. The stock price dipped further by 1.74 per cent or Rs 2.55, taking the value of the shares to Rs 144.35.
Manappuram's Clarification
In addition, the NBFC, in response to the clarification sought by the exchange on the Movement in Volume, filed a 'clarification'.
Manappuram, in a statement filed in an exchange filing, said, "We refer to your aforesaid email communication, seeking clarification on significant increase in the volume of our security across exchanges in the recent past."
The statement further read, "We would like to inform you that we have already intimated exchanges of the development in respect of a material subsidiary of the company and a press release on October 18, 2024. There is not any other pending information to be intimated under Regulation 30 of SEBI (LODR) Regulations, 2015. We will keep the exchange updated on this matter."