Manappuram Finance tanks 10% as ED raids premises

Manappuram Finance’s shares fell 10 percent on May 3 following reports of the Enforcement Directorate (ED) searching multiple locations linked to the non-banking financial company (NBFC) in Kerala’s Thrissur.

Among the premises searched were promoter VP Nandakumar’s office and residence, as well as the company’s headquarters.

The ED is investigating allegations of money laundering and is reportedly examining documents and statements made by company executives.

The agency that probes money laundering and other economic offences is yet to make a statement on the raids, which were on at the time of writing this copy.

The investigation may be related to the company collecting Rs 150 crore from the public in deposits without the Reserve Bank of India’s approval, some reports said.

The company is also suspected of doing large-scale cash transactions by violating KYC norms.

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Mannapuram Finance has been providing financial services for over three decades and offers a variety of services, including gold, microfinance, and housing loans with a significant presence in South India.

On April 29, the company had announced it was considering various options for raising funds through borrowings, including issuing debt securities on onshore and offshore securities markets by public issue, private placement, or through commercial papers.

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As of 12.21 pm, the stock was trading 8.67 percent lower on the National Stock Exchange at Rs 118.45. The sectoral benchmark Nifty financial services was down 0.55 percent at 19,101.45 points.

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