Shares of Manappuram Finance Ltd. fell after the directorate of enforcement froze the assets worth Rs 143 crore of its managing director on money laundering allegations.
The assets of Managing Director VP Nandakumar were frozen in the form of bank balances under the Prevention of Money Laundering Act (PMLA), 2002.
The measure was taken after various incriminating documents were found and seized in raids conducted at six premises in Thrissur, Kerala, belonging to the company and its managing director, according to a notification by the ED.
Shares of the company declined 10.9% to Rs 106.2 apiece as of 10:00 a.m., compared to a 0.35% fall in the benchmark NSE Nifty 50.
The total traded quantity so far in the day stood at 18.5 times the 30-day average volume.
Of the 19 analysts tracking the stock, 17 maintain a 'buy,' one suggests a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 38%.
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