Manappuram Finance shares surged 5.4% to a 52-week high of Rs 207.30 following news of subsidiary Asirvad Micro Finance receiving Sebi approval for an IPO. The IPO, filed last October, will follow a book-building process with allocation to various investor categories.
Manappuram, Muthoot Finance: If one goes by what Nirmal Bang Institutional Equities suggest, the two gold loan companies are likely to benefit in terms of growth and profitability, considering their leadership position in the industry.
The delay in the IPO represents a blow to Manappuram Finance, which had raised its stake in Ashirwad Microfinance in June 2022, acquiring a majority stake as part of its broader diversification strategy. Asirvad Microfinance had filed a DRHP with SEBI to raise Rs 1,500 crore from the public back in October last year.
Shares of 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.