Manappuram Finance share price rise 6% as RBI lifts curbs on subsidiary Asirvad Micro Finance

Stock Market Today: Manappuram Finance share price gained 6% in the morning trades on Thursday after the Reserve Bank of India (RBI) lifted curbs on its subsidiary Asirvad Micro Finance.

Manappuram Finance share price opened at ₹188.80 on the BSE on Thursday, almost 5% higher than the previous close of ₹180.05. Manappuram Finance share price thereafter gained further to intraday high of ₹191.50, which translated into gains of more than 6%.

Manappuram Finance share price has corrected significantly companred to 52-week high of ₹230.05, tracking a decline in the broader markets and benchmark indices. 

While the Mannapuram share is currently trading lower than its 52-week high, it has recorded smart gains of over 32% since its October lows. Mannapuram Share price had dipped to a 52-week low of ₹138.40 in October.

Manappuram Finance in its press release on the exchanges on Wednesday post market hours had said, “We are pleased to inform you that the Reserve Bank of India, vide its letter dated January 08, 2025, has lifted the restrictions imposed on Asirvad Micro Finance Limited with respect to sanction or disbursal of loans with immediate effect”.

As per the directives with reference to the order and press release issued by the Reserve Bank of India on October 17, 2024, Mannapuram Fiance subsidiary company Asirvad Micro Finance had been instructed to cease and desist from sanctioning or disbursing loans, effective from the close of business on October 21, 2024.

The restrictions thereby being lifted in January 2025 have cheered the market and improved the prospects of Manappram Finance. The impact on financials will be visible from the ongoing quarter i.e. Q4 which starts in January and ends in March 2025. 

Many analysts In Q3 had pared FY25 and 26 estimated earnings per share (EPS) by 19% and 12% to factor in regulatory and sectoral challenges hurting credit traction and credit quality. 

However, analysts at Elara Securities maintained an ‘Accumulate’ rating as they said the material stock correction is already in order.

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