Manappuram Finance Shares Price drop by 2% after block deal

Manappuram Finance share price were down 1.98% at ₹143.2 after 11% of the company’s equity changed hands in a block deal on August 24. However, specific information about the buyers and sellers is still undisclosed. As of June 30, promoter VP Nandakumar has 29% stake in Manappuram Finance. Jyoti Nandakumar, another promoter has 5.67% stake in the company.

Investor and Mutual Fund Holdings

Among mutual funds, SBI contra fund has 1.19% stake in Manappuram Finance, whereas DSP midcap fund holds 2.43%. Among Foreign Portfolio Investors, Bnp Paribas Arbitrage holds 1.74% of Manappuram Finance, and Bofa Securities Europe Sa has 1.44% stake in the company. Quinag Acquisition is the biggest foreign institutional investor in the stock with  9.9% stake as of June 30, 2023.

Performance and Financials

Manappuram Finance's trading activity and performance have been quite noteworthy. As of 09:15 a.m. a substantial 88.4 million shares, equivalent to 10.44% of total equity, were traded on the BSE. Impressively, the company has outperformed the market over the past six months, with its stock surging almost 40%, in contrast to the benchmark index's 10.7% rise. Recently, the company's shares went ex-dividend after announcing an interim dividend of ₹0.8 per equity share of ₹2 each, scheduled for disbursement by September 8.

In today's trading session, the stock has dipped by nearly 3%, yet it remains slightly above recent block trade levels. In terms of financials, Manappuram Finance's first fiscal quarter demonstrated robust performance. With a year-on-year increase of 21% and a sequential rise of 5%, the company's total assets under management showcased strength. Notably, its core business of providing gold loans saw over 4% growth in AUM sequentially. Financially, the company's bottom line surged by 85% and its Net Interest Income (NII) rose by 38% year-on-year. Overall, the past year's performance has been impressive, with the stock delivering almost a 50% return, far surpassing the Nifty 50 index's 10% gain.

Block Trades and Quinag Acquisitions

Early trade today witnessed a flurry of activity in the shares of Manappuram, with multiple block trades making waves in the market. A substantial sum of ₹1,404.92 crore, representing 11.69% of the company's equity, changed hands in these transactions. Notably, a single block worth ₹1,188.81 crore, accounting for a 9.9% stake, was a prominent part of this significant equity exchange. The transactions were executed at a per-share price of ₹141.85. Current shareholding records reveal that Quinag Acquisitions (FPI) Ltd (Apex) now commands a substantial 9.9% stake in Manappuram as of June 2023. In the days leading up to this important equity exchange, there was considerable market chatter regarding the upcoming block trades. This level of anticipation highlights the market's keen interest in significant events that have the potential to impact a company's growth and its valuation in the market.

Manappuram Finance functions as a Non-Banking Finance Company (NBFC) and offers an extensive array of fund-based and fee-based services. These services encompass gold loans, money exchange facilities, and more.