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  1. Manappuram Finance plunges 7% as SEBI puts its subsidiary IPO on hold

Manappuram Finance plunges 7% as SEBI puts its subsidiary IPO on hold

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2 min read • Updated: January 17, 2024, 4:09 PM

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Summary

The market regulator Securities and Exchange Board (SEBI) of India put Manappuram Finance’s subsidiary Asirvad Microfinance’s IPO on hold.

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Shares of the gold loan provider were down 7% today.

This comes after the market regulator Securities and Exchange Board (SEBI) of India put Manappuram Finance’s subsidiary Asirvad Microfinance’s IPO on hold. The microfinance company had filed draft papers with SEBI in October 2023 to raise ₹1,500 crore through the Initial Public Offering (IPO) route.

After commencing operations in 2008, with two branches in Tamil Nadu, the lender has grown rapidly over the years and today has a pan-India presence. Asirvad Microfinance, which predominantly offers loans to low-income women, is the largest microfinance lender in India in terms of geographical coverage, with a presence in 450 districts in India.

It operates through the network of 1,684 branches. The lender caters to 32 crore active borrowers. As of March 31, 2023, it had assets under management (AUM) of ₹ 10,040 crore.

Meanwhile, in 2023, shares of Manappuram Finance were on an upward trajectory amid rising gold prices, which are beneficial for gold loan providers like Manappuram Finance. This is because the increase in the value of gold means a rise in the ticket size of loans.

Shares of Manappuram Finance surged 48% in 2023, beating the benchmark as well as broader indices. Last year, the NIFTY50 index delivered around 20% return.