Manappuram Finance zooms ~9% to hit 52-week high; tops smallcap index

27 Jun 2024 , 03:04 PM

Manappuram Finance Ltd shares rose over 9% on Thursday, June 27, reaching a 52-week high and emerging as the top gainer in the small-cap index during the early session trade.

The stock opened at ₹197.45 on the BSE, slightly up from its previous closing price of ₹196.45. It surged to a 52-week high of ₹214, up 9% from Wednesday’s close.

Manappuram Finance’s shares have increased by more than 74% since its 52-week low of ₹122.7 on July 14, 2023.

Earlier this month, VP Nandakumar, MD and CEO of Manappuram Finance indicated that demand for gold loans has increased this year, spurred by middle-income individuals seeking finances following Covid.

“Our average ticket size is between ₹70,000-75,000, with an average loan life of three months. The clientele is largely from the upper and lower middle classes, and their need for money facilitates our growth,” he stated.

Nandakumar also mentioned Asirvad Microfinance, Manappuram Finance’s non-banking microfinance affiliate, and its upcoming initial public offering (IPO).

He stated that the draft red herring prospectus (DHRP) has been filed, and the launch is planned for the next 2-3 months.

Manappuram Finance Ltd. is one of India’s top gold loan NBFCs. Shri. V.P. Nandakumar, the present MD & CEO, launched the company in 1949 in the seaside village of Valapad (Thrissur District) with his late father, Mr. V.C.

At around 2.50 PM, Manappuram Finance was trading 7.43% higher at ₹210.85, against the previous close of ₹196.27 on NSE.

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