Latest news with #Manappuram
Business Upturn
2 days ago
- Business
- Business Upturn
Manappuram Finance shares rise 3% as RBI revises LTV to 85% for small gold loans
By Aditya Bhagchandani Published on June 6, 2025, 12:40 IST Shares of Manappuram Finance Ltd climbed 3% to ₹240.56 on Friday after the Reserve Bank of India (RBI) announced a key revision in gold loan regulations. RBI Governor Sanjay Malhotra stated that the loan-to-value (LTV) ratio will be increased from 75% to 85% for gold loans up to ₹2.5 lakh per borrower, inclusive of the interest component. The stock opened at ₹234.58 and touched an intraday high of ₹242.58 before settling around ₹240.56, gaining ₹5.98 from the previous close. Manappuram's market capitalization stood at ₹204.33 billion, with a strong average volume of 4.68 million shares. Additional measures announced by the RBI include eliminating the need for credit appraisals for small gold loans and requiring end-use monitoring only under Priority Sector Lending (PSL). Final guidelines on the new gold loan regulations are expected today or by Monday. The announcements came as part of the RBI's broader policy update, which included a 50 bps repo rate cut to 5.5%, a CPI inflation revision for FY26 to 3.7%, and a maintained GDP growth forecast of 6.5%. These changes are expected to improve lending conditions and benefit key gold loan financiers like Manappuram. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
09-05-2025
- Business
- Time of India
Manappuram posts Rs 203 crore loss on Asirvad stress, names new CEO
The Manappuram Finance group, in which Bain Capital is set to buy a 42% stake, has suffered a Rs 203 crore consolidated loss for the fourth quarter on account of its subsidiary Asirvad Micro Finance, which is reeling under severe asset quality stress . The Manappuram group earned a Rs 564 crore net profit in the year-ago period. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop In Lanao Del Norte - Watch What Happens Happy in Shape Undo On a standalone basis, Manappuram however reported a net profit of Rs 414 crore for the quarter under review which was 3.2% down as compared with Rs 428 crore earlier. Separately, Asirvad suffered Rs 794 crore loss as compared with Rs 138 crore profit in the year ago-quarter. In the third quarter too, the microfinance lender reported a loss of Rs 253 crore. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. With this, Manappuram, which owns 98% in Asirvad, failed to comply with all the financial covenants as mentioned in the debenture trust deed, independent auditor Chokshi & Chokshi LLP said in a note. The The consolidated financial results of the group include the audited financial results of the holding company and subsidiaries namely, Asirvad Live Events Micro Finance, Manappuram Home Finance, Manappuram lnsurance Brokers and Manappuram Comptech & Consultants. Manappuram Finance however declared an interim dividend of Rs 0.50 per equity share of the face value of Rs 2 each. The record date for dividend will be May 15. The parent company has decided to infuse Rs 500 crore in equity of Asirvad. Meanwhile, Manappuram has announced the appointment of Deepak Reddy as chief executive officer, effective from August 1, 2025. Consequently, the designation of Nandakumar VP , will change to managing director from MD & CEO from July 31. Reddy currently is a Bajaj Finserv executive.
Yahoo
21-03-2025
- Business
- Yahoo
Bain Capital to buy stake worth $508 million in India's Manappuram Finance
(Reuters) -India's Manappuram Finance said on Thursday Bain Capital would invest 43.85 billion rupees ($508 million) to acquire an 18% stake in the gold loan provider at a time record prices of the precious metal has made its mortgaging appealing. The asset manager will subscribe to Manappuram's shares and warrants at 236 rupees apiece, implying a 30% premium over its six-month average trading price. Bain Capital will be classified as a promoter of the company post-investment and will jointly control it with existing promoters. Households in India, the world's second-biggest gold consumer, typically buy bullion during festivals and weddings. Record prices make gold loans more attractive. Indian gold loan market is expected to reach around 14.19 trillion rupees by fiscal 2029 at a five-year compound annual growth rate of 14.85%, according to PwC. The deal, expected to close by the second or third quarter of the next financial year, will trigger a mandatory open offer for the purchase of an additional 26% stake from existing shareholders at the same price, India's second-largest gold loan provider said. Based on open-offer subscription, Bain Capital's stake post-investment will vary between 18% and 41.7%. Manappuram's promoters, which include its managing director and chief executive V P Nandakumar, will hold a 28.9% stake in the company. After the deal, Bain Capital will also have the right to influence strategic decisions at the company, including the right to nominate for appointment of key posts such as the CEO. Separately, Manappuram's microfinance arm Asirvad Micro Finance said it would withdraw its initial public offering draft papers due to uncertain market conditions. ($1 = 86.3290 Indian rupees)
Yahoo
21-03-2025
- Business
- Yahoo
Indian gold loan provider Manappuram hits record high as Bain Capital plans stake buy
(Reuters) - Shares of India's Manappuram Finance jumped 6% on Friday after analysts said that Bain Capital's plans to buy an 18% stake and jointly control the gold loan provider will help ease its management succession plans. U.S. private equity firm Bain Capital will subscribe to Manappuram's shares and warrants at 236 rupees apiece, at a 9% premium over the stock's closing price on Thursday of 217.5 rupees. After the investment, which is valued at $508 million, Bain Capital will jointly control Manappuram with other large shareholders, termed as 'promoters' under Indian regulations. Manappuram's shares rose as much as 6.3% to 231.08 rupees - their highest level on record - as of 12:05 p.m. IST. The company's founder and CEO V.P. Nandakumar, who has been at the helm for almost four decades, will become the company's non-executive chairman post the investment, it said on Thursday, with investors now eyeing nominations for the top role. Bain Capital will also have the capacity to influence strategic decisions at Manappuram, including the right to nominate for the appointment of key roles, such as the CEO, which analysts at Jefferies and CLSA see as a key positive from the deal. "We see the possibility of healthy re-rating in Manappuram stock as new management takes over," CLSA analysts said in a note. Jefferies and CLSA raised their price targets on the stock after the announcement by 14.6% and 20%, respectively. They have "buy" and "outperform" ratings on the stock. The deal, which comes at a time when record prices have made gold mortgaging appealing, is expected to close in the next financial year and will aid growth in Manappuram's gold loan business. Gold loans contribute 75% of the company's overall revenue. Jefferies also said that a part of the capital raised from the stake sale may be utilized to absorb losses in Manappuram's microfinance business, which was hit by uncertainty in market conditions and regulatory scrutiny. Its unit, Asirvad Micro Finance would withdraw the IPO draft papers, Manappuram said on Thursday. Sign in to access your portfolio
Reuters
21-03-2025
- Business
- Reuters
Indian gold loan provider Manappuram hits record high as Bain Capital plans stake buy
March 21 (Reuters) - Shares of India's Manappuram Finance ( opens new tab jumped 6% on Friday after analysts said that Bain Capital's plans to buy an 18% stake and jointly control the gold loan provider will help ease its management succession plans. U.S. private equity firm Bain Capital will subscribe to Manappuram's shares and warrants at 236 rupees apiece, at a 9% premium over the stock's closing price on Thursday of 217.5 rupees. here. After the investment, which is valued at $508 million, Bain Capital will jointly control Manappuram with other large shareholders, termed as 'promoters' under Indian regulations. Manappuram's shares rose as much as 6.3% to 231.08 rupees - their highest level on record - as of 12:05 p.m. IST. The company's founder and CEO V.P. Nandakumar, who has been at the helm for almost four decades, will become the company's non-executive chairman post the investment, it said on Thursday, with investors now eyeing nominations for the top role. Bain Capital will also have the capacity to influence strategic decisions at Manappuram, including the right to nominate for the appointment of key roles, such as the CEO, which analysts at Jefferies and CLSA see as a key positive from the deal. "We see the possibility of healthy re-rating in Manappuram stock as new management takes over," CLSA analysts said in a note. Jefferies and CLSA raised their price targets on the stock after the announcement by 14.6% and 20%, respectively. They have "buy" and "outperform" ratings on the stock. The deal, which comes at a time when record prices have made gold mortgaging appealing, is expected to close in the next financial year and will aid growth in Manappuram's gold loan business. Gold loans contribute 75% of the company's overall revenue. Jefferies also said that a part of the capital raised from the stake sale may be utilized to absorb losses in Manappuram's microfinance business, which was hit by uncertainty in market conditions and regulatory scrutiny. Its unit, Asirvad Micro Finance would withdraw the IPO draft papers, Manappuram said on Thursday.
