Manappuram Finance announced two major moves on December 26: a ₹250 crore investment in its micro‑finance arm Asirvad, and the hiring of a seasoned banker as its new Group Chief Financial Officer.
₹250 cr Capital Injection into Asirvad Micro Finance
The board approved up to ₹250 crore to be put into Asirvad Micro Finance Limited in one or more installments. This will lift Manappuram’s ownership from 98.31% to 98.56% at a price of ₹51 per share.
Manappuram first bought Asirvad in February 2015 when the micro‑finance company had assets of about ₹300 crore. Today, Asirvad’s assets under management have grown to roughly ₹8,189 crore, serving low‑income women, small businesses and gold‑loan customers.
New Group CFO Joins the Team
Buvanesh Tharashankar, a chartered accountant with almost 30 years of experience at RBL Bank, Jana Small Finance Bank, and Citibank, has been appointed Group CFO effective immediately. He will work with the leadership team to improve financial governance, capital efficiency and long‑term strategy while keeping regulatory standards high.
Bindu AL will remain the company’s Chief Financial Officer and a key managerial person.
Borrowing Limit Raised
The board also gave the green light to increase Manappuram’s borrowing capacity to up to ₹75,000 crore, giving the firm more flexibility for future growth.
Share Price Snapshot
- Shares closed at ₹313.90, ending a six‑day winning streak.
- In the past five days, the stock rose over 9% and hit a 52‑week high of ₹318.90.
- Year‑to‑date, the share price is up about 64% with a P/E ratio above 34.
What This Means for Investors
The fresh capital should help Asirvad expand its lending reach, especially to women and small enterprises. A stronger financial leadership team may improve operational efficiency and support the larger borrowing ceiling.
Disclaimer
Remember, this is my take on the news, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.