Shares in the gold finance firm Manappuram Finance have gained 33 per cent in the last five trading sessions since June 19, 2012. The stock traded 8 per cent higher at Rs 29.30 in a flat Mumbai market at 11 a.m. Tuesday.
Here are the reasons for the outperformance in the stock.
1) Private Equity firm Baring India has picked up 5.94 per cent stake in Manappuram Finance for an estimated Rs 136 crore. Baring India bought about 5 crore shares of Manappuram Finance from the open market. This means investors are growing confident about the company's prospect.
2) Rating agency Brickwork Ratings has reaffirmed its "BWR AA-" for Manappuram Finance's non-convertible debentures issue of Rs 750 crore and Rs 100 crore, indicating a degree of safety regarding the company's ability to fulfill its debt obligations.
3) On June 25, ratings agency ICRA removed the Company from the rating watch with developing implications. ICRA's outlook on the long term rating is now stable. Earlier, CRISIL had removed the company's rating from “Rating watch with Developing Implications”.
4) CRISIL also reaffirmed “CRISIL A1+” rating for various debt programs of Manappuram Finance. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of debt obligations.
5) Brickwork and CRISIL had placed Manappuram on ratings watch after the Reserve Bank of India (RBI) had issued a directive in February saying that the company had collected deposits in the name of Manappuram Agro Farms in violation of the terms and conditions of its registration as a non-deposit taking NBFC.
Manappuram Finance was established in 1992 in Thrissur (Kerala). It is a non-deposit taking NBFC and is mainly engaged in providing retail advances against bullion asset collaterals, in the form of household used jewellery. MFL had 2,908 branches across India at the end of FY 12.
The company has a strong presence in South India in states of Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh.
(With inputs from PTI)
Shares in the gold finance firm Manappuram Finance have gained 33 per cent in the last five trading sessions since June 19, 2012. The stock traded 8 per cent higher at Rs 29.30 in a flat Mumbai market at 11 a.m. Tuesday.
Here are the reasons for the outperformance in the stock.
1) Private Equity firm Baring India has picked up 5.94 per cent stake in Manappuram Finance for an estimated Rs 136 crore. Baring India bought about 5 crore shares of Manappuram Finance from the open market. This means investors are growing confident about the company's prospect.
2) Rating agency Brickwork Ratings has reaffirmed its "BWR AA-" for Manappuram Finance's non-convertible debentures issue of Rs 750 crore and Rs 100 crore, indicating a degree of safety regarding the company's ability to fulfill its debt obligations.
3) On June 25, ratings agency ICRA removed the Company from the rating watch with developing implications. ICRA's outlook on the long term rating is now stable. Earlier, CRISIL had removed the company's rating from “Rating watch with Developing Implications”.
4) CRISIL also reaffirmed “CRISIL A1+” rating for various debt programs of Manappuram Finance. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of debt obligations.
5) Brickwork and CRISIL had placed Manappuram on ratings watch after the Reserve Bank of India (RBI) had issued a directive in February saying that the company had collected deposits in the name of Manappuram Agro Farms in violation of the terms and conditions of its registration as a non-deposit taking NBFC.
Manappuram Finance was established in 1992 in Thrissur (Kerala). It is a non-deposit taking NBFC and is mainly engaged in providing retail advances against bullion asset collaterals, in the form of household used jewellery. MFL had 2,908 branches across India at the end of FY 12.
The company has a strong presence in South India in states of Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh.
(With inputs from PTI)
Shares in the gold finance firm Manappuram Finance have gained 33 per cent in the last five trading sessions since June 19, 2012. The stock traded 8 per cent higher at Rs 29.30 in a flat Mumbai market at 11 a.m. Tuesday.
Here are the reasons for the outperformance in the stock.
1) Private Equity firm Baring India has picked up 5.94 per cent stake in Manappuram Finance for an estimated Rs 136 crore. Baring India bought about 5 crore shares of Manappuram Finance from the open market. This means investors are growing confident about the company's prospect.
2) Rating agency Brickwork Ratings has reaffirmed its "BWR AA-" for Manappuram Finance's non-convertible debentures issue of Rs 750 crore and Rs 100 crore, indicating a degree of safety regarding the company's ability to fulfill its debt obligations.
3) On June 25, ratings agency ICRA removed the Company from the rating watch with developing implications. ICRA's outlook on the long term rating is now stable. Earlier, CRISIL had removed the company's rating from “Rating watch with Developing Implications”.
4) CRISIL also reaffirmed “CRISIL A1+” rating for various debt programs of Manappuram Finance. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of debt obligations.
5) Brickwork and CRISIL had placed Manappuram on ratings watch after the Reserve Bank of India (RBI) had issued a directive in February saying that the company had collected deposits in the name of Manappuram Agro Farms in violation of the terms and conditions of its registration as a non-deposit taking NBFC.
Manappuram Finance was established in 1992 in Thrissur (Kerala). It is a non-deposit taking NBFC and is mainly engaged in providing retail advances against bullion asset collaterals, in the form of household used jewellery. MFL had 2,908 branches across India at the end of FY 12.
The company has a strong presence in South India in states of Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh.
(With inputs from PTI)
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