On January 10, the stock of Manappuram Finance dropped by 7.5% in early trading because the Securities and Exchange Board of India (SEBI) temporarily halted the public offering of its subsidiary, Asirvad Micro Finance.
Asirvad Micro Finance had applied to raise Rs 1,500 crore from the public in October by submitting a proposal to SEBI. However, SEBI’s decision to put the IPO on hold means that the microfinance company’s stock won’t be listed as planned.
Manappuram Finance had purchased a significant majority stake in Asirvad Micro Finance in order to diversify its business. They acquired 71% of the company in February 2015 and increased it to 95% in June 2022. The founder of Asirvad Micro Finance still owns the remaining stake.
At 9:59 am, Manappuram Finance’s shares were trading at Rs 168.40 on the National Stock Exchange (NSE). Following the news, there was a significant increase in trading activity, with one crore shares changing hands on the exchanges, surpassing the 77 lakh shares traded in the previous session.