Shares of gold loan company Manappuram Finance have surged 53% in the last 8 trading sessions after a range of positive developments in recent days helped the stock.
Baring India Private Equity had recently increased its stake in Manappuram Finance to 5.94% by purchasing a significant chunk of shares from the open market.
Rating agencies Crisil and Brickwork have removed the company from their “rating watch with developing implications” and restored its credit rating to its previous levels.
Also, recent regulation by the Reserve Bank of India are expected to eliminate small gold loan business companies, which will in turn benefit big NBFC’s such as Manappuram in the long run, reports said.
Shares of Manappuram Finance closed at Rs.32.10, down 3.2% over the previous close on likely profit booking. It had touched a day’s high of Rs.34.70 and a day’s low of Rs.31.40. The total traded quantity of the shares stood at 59.80 lakh shares on the BSE.