Introduction:
Manappuram Finance has recently experienced a remarkable surge in its stock price, attributed to the approval granted by the Securities and Exchange Board of India (SEBI) for the IPO of its subsidiary, Asirvad Micro Finance. This approval has sparked significant investor interest, leading to a notable increase in Manappuram Finance’s share price, reaching a 52-week high. In this article, we’ll delve into the implications of SEBI’s decision and its impact on investors.
Manappuram Finance Share Price Surge:
Following SEBI’s approval of Asirvad Micro Finance IPO, Manappuram Finance’s share price has soared by more than 5%, hitting a new 52-week high. Trading on the Bombay Stock Exchange (BSE) saw the stock open at ₹196.95 and reach an intraday high of ₹207.30, with a low of ₹195.65. This surge underscores investor confidence in Manappuram Finance and its subsidiary, Asirvad Micro Finance.
Technical Analysis and Future Outlook:
Equity Technical and Derivative Analyst Rajesh Bhosale from Angel One notes the significant momentum in Manappuram Finance’s share price, marked by price and volume breakouts. Bhosale anticipates further upside potential, suggesting that breaching the ₹200 mark could lead to levels ranging between ₹215 and 218, with support at ₹195. This optimistic forecast reflects the positive sentiment surrounding the company’s future performance.
Asirvad Micro Finance IPO Details:
Asirvad Micro Finance, a subsidiary of Manappuram Finance, specializes in providing microloans to low-income women, addressing the financial needs of underserved segments. Previously delayed by SEBI, the IPO has now been given the green light. It involves a fresh issuance of equity shares up to ₹1500 crore, without an offer for sale (OFS) component, and with a face value of ₹10 per share.
The IPO Process:
The IPO will utilize the book-building process, with 75% of the issue available for qualified institutional buyers, 15% for non-institutional bidders, and 10% for retail bidders. Additionally, subject to discussions with lead bankers, the company may consider a private placement of additional equity shares amounting to ₹300 crore. Upon completion, the issue size will be adjusted accordingly.
Manappuram Finance Share Price Surge:
Following SEBI’s green light for the Asirvad Micro Finance IPO, Manappuram Finance’s share price has experienced an impressive surge, surpassing 5% and reaching a new 52-week high. The trading activity on the Bombay Stock Exchange (BSE) has been particularly dynamic, with the stock opening at ₹196.95 and achieving an intraday high of ₹207.30, with a low of ₹195.65. This remarkable share price surge underscores investors’ unwavering confidence in both Manappuram Finance and its subsidiary, Asirvad Micro Finance.
Utilization of IPO Proceeds:
The net proceeds from the IPO issuance, as outlined in the Draft Red Herring Prospectus (DRHP), will bolster the company’s capital base, supporting future business needs and strategic deployments in fiscal year 2024.
Technical Analysis and Future Outlook:
Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, has keenly observed the unprecedented momentum in Manappuram Finance’s share price. He highlights the significant price and volume breakouts, indicative of a robust upward trend. Bhosale’s optimistic forecast suggests that breaching the ₹200 mark could pave the way for even higher levels, ranging between ₹215–218, with solid support at ₹195. This positive outlook reflects the prevailing sentiment surrounding the company’s future performance and growth trajectory.
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Conclusion:
SEBI’s Asirvad Micro Finance IPO approval represents a significant milestone for Manappuram Finance and its subsidiary. The surge in Manappuram Finance’s share price reflects investor confidence in the growth potential of both entities. As the IPO process unfolds, investors can anticipate heightened interest and increased visibility for Manappuram Finance and Asirvad Micro Finance in the financial market landscape.