At around 12:30 pm, shares of Manappuram Finance were down 9.56 per cent at Rs 117.30 apiece. Here’s why shares of the non-banking financial company crashed on Wednesday.
By India Today Business DeskShares of Manappuram Finance plunged nearly 10 per cent per cent on Wednesday after the Enforcement Directorate conducted searches at multiple premises of the company in Kerala.
The searches are related to a money laundering investigation. It has been reported that the searches were also carried out in four locations, including the headquarters in Thrissur and the residence of promoter VP Nandakumar.
Officials quoted in a PTI report said raids were being conducted to gather evidence related to allegations that the non-banking financial company (NBFC) collected public deposits worth Rs 150 crore in contravention of guidelines issued by the Reserve Bank of India (RBI).
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The ED also suspects that the group was doing large-scale transactions without following KYC norms.
At around 12:30 pm, shares of Manappuram Finance were down 9.56 per cent at Rs 117.30 apiece.
The development comes at a time when the board of the NBFC was considering issuances of debt securities later this month. It was also considering other options for raising funds through borrowings.
On April 29, the company said its board of directors and its various committees may consider and approve issuances of debt securities this month.
Wilmer Bode
Julian Marks