Manappuram Finance Rises To Two-Year High As Arm Gets SEBI Nod For IPO
The stock rose as much as 5.28% during the day to Rs 207.30 apiece on the NSE.
Shares of Manappuram Finance Ltd. surged over 5% on Tuesday to the highest in over two years after the non-banking financial company's arm, Asirvad Micro Finance Ltd., got approval from SEBI for its initial public offering.
The total size of the issue is Rs 1,500 crore, according to the company's draft red herring prospectus. "Our company proposes to utilise the net proceeds from the fresh issue towards augmenting the capital base of our company to meet future business requirements."
On the NSE, Manappuram's stock rose as much as 5.28% during the day to Rs 207.30 apiece, the highest since Nov. 15, 2021. It was trading 3.53% higher at Rs 203.7 per share, compared to a 0.60% advance in the benchmark Nifty 50 as of 2:29 p.m.
The share price has risen 18.55% on a year-to-date basis and 57.21% in the last 12 months. The total traded volume so far in the day stood at 1.67 times its 30-day average. The relative strength index was at 72.56, indicating that the stock may be overbought.
Fifteen out of the 18 analysts tracking the company have a 'buy' rating on the stock, one recommends a 'hold' and two suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 7.5%.
