Manappuram Finance share price slumps over 9% as ED raids Kerala premises

The searches are being conducted by the ED in response to claims that deposits totaling more than ₹150 crore were illegally collected from the general people without the RBI’s consent. The group bsemay have been engaging in significant cash transactions on a broad scale without adhering to KYC guidelines.

Business Today in its report said that the anti-money laundering organisation searched a number of locations on properties connected to the Manappuram Finance Limited group in Thrissur, Kerala. Additionally, searches were conducted at the promoter VP Nandakumar’s office and home.

They told Press Trust of India that four locations, including the company’s Thrissur headquarters and its promoters’ homes, are being searched.

The stock opened at ₹127.15 per share on BSE, nearly 2% lower than previous closing price of ₹129.65 per share.

During Wednesday’s trading session, the stock hit a intraday low of ₹116.70 and intraday high of ₹129.55 on BSE.

The announcement came while Manappuram Finance’s board was debating whether to issue debt instruments later this month. The corporation was looking at a number of possibilities for borrowing money, including the issuance of different debt securities in the domestic and international securities markets via a public offering, a private placement, or the sale of commercial papers.

“Based on the prevailing market conditions, the board of directors/ financial resources and management committee/ debenture committee of the board of directors of the company may consider and approve issuances of debt securities during the month of May, 2023, subject to such terms and conditions including the issue price of debt securities, as the board/respective committee may deem fit,” the company said on April 29 in an exchange filing.

At 12:27 IST, shares of the NBFC were trading over 9% lower at ₹117.60 per share on BSE.