Shares of Manappuram Finance surged by over 4% in Monday’s trade, reaching a high of Rs 209, driven by increased buying activity following reports of a potential acquisition. The Kerala-based gold loan provider saw its stock climb amid speculation that private equity firm Bain Capital is nearing a deal to acquire a controlling stake in the company.
According to sources, Bain Capital is close to finalizing the deal, which is estimated to be valued between Rs 9,000 crore and Rs 10,000 crore. The acquisition comes shortly after the Reserve Bank of India (RBI) lifted restrictions on Manappuram’s subsidiary, Asirvad Micro Finance, regarding the sanctioning of loans, marking a significant development for the company.
At around 1:09 pm, Manappuram’s shares were trading at Rs 205.45, reflecting a gain of 2% or Rs 4.6, defying the broader market downturn. The stock has climbed over 6% in the last month, with a year-to-date return of 9%.
This news follows a broader market trend of increased optimism around Manappuram Finance, particularly after the RBI’s decision to lift the ban on Asirvad Micro Finance last month. This move has paved the way for a resumption of loan sanctions, providing positive momentum for the company’s growth prospects.
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