SEBI delay on Asirvad IPO hits Manappuram Finance shares

MUMBAI – Shares of Manappuram Finance suffered a sharp decline today, following the Securities and Exchange Board of India’s (SEBI) decision to postpone the initial public offering (IPO) of its subsidiary, Asirvad Micro Finance. Manappuram Finance’s stock plummeted 7.5% on the National Stock Exchange (NSE) and 4.47% on the Bombay Stock Exchange (BSE), hitting a daily low of Rs 163.4.

The IPO delay represents a setback for Manappuram Finance, which had increased its stake in Asirvad Micro Finance in June 2022, securing a majority holding as part of its broader diversification strategy. This move was intended to consolidate its position in the microfinance sector and expand its portfolio of financial services.

Asirvad Micro Finance had initially filed for an IPO in October of the previous year, aiming to raise Rs 1,500 crore. The postponement has thus disrupted Manappuram Finance’s strategic plans, reflecting in the immediate negative reaction in its share price.

The founder of Asirvad has retained a stake in the company since February 2015, following the initial investment by Manappuram Finance. The relationship between the two entities has been a significant part of Manappuram’s expansion efforts within the microfinance industry.

Investors are closely monitoring the situation, as the regulatory delay has introduced uncertainty regarding the timing and potential rescheduling of Asirvad Micro Finance’s public offering.

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