Manappuram Finance tumbles 12% as ED raids companys Thrissur office
The report further said the searches were conducted at the companys promoters premises too. It is alleged that the company raised funds without RBIs approval.
Shares of Manappuram Finance were in a free fall in Wednesday's session (May 3, 2023) after news reports said the Directorate of Enforcement (ED) conducted searches at the company's Thrissur offices in Kerala. As per a report by the TV channel Zee Business, the searches are being conducted related to deposits.
The report further said the searches were conducted at the company's promoters' premises too. It is alleged that the company raised funds without RBI's approval.
At the time of writing this report, the stock was trading around 14 per cent lower at Rs 111.70 on the BSE. In comparison, the benchmark S&P BSE Sensex traded 0.22 per cent lower at 61,222.55 points. The stock eventually settled at Rs 113.95 apiece, down 12.11 per cent.
Manappuram Finance is one of the leading gold loan non-banking financial companies (NBFCs). The company is promoted by Shri VP Nandakumar, who is also the current MD & CEO. It was founded in 1949 in the coastal village of Valapad (Thrissur District) by Nandakumar's late father V.C. Padmanabhan. Shri Nandakumar took over the reins in 1986 after his father expired.
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