Manappuram Finance Faces Reputational Risk Amid Probe, Says S&P
Listen to This Article
The Directorate of Enforcement (ED) is probing Manappuram Agro Farms (MAGRO), a former sole proprietorship concern of V P Nandakumar (CEO and managing director of Manappuram Finance).
The company’s stock closed 11.45 per cent lower at Rs 105.6 per share on BSE.
In a filing, the company said the ED action had nothing to do with Manappuram Finance and had no impact on its financial position/operations.
The company said the board noted with satisfaction the explanation given by Nandakumar. The matter pertained to a 10-year-old of erstwhile proprietorship concern. He updated the regulators at periodical intervals and he was in touch with his legal advisors to remedy the situation.
Ratings on Manappuram derive support chiefly from the company's strong capitalisation and earnings and from its position as one of the leaders in gold-backed lending in India.
As of May 3, Manappuram has about Rs 35 billion in working capital loans due for repayment in three months and liquid assets of about Rs 10 billion. The company has an asset base of largely shorter tenor and self-liquidating loans, tempering refinancing risk, S&P added.
Coutts Sets Scope On New Continent
Coutts steps into private marketsCoutts, the private bank best known for serving Britain’s wealthiest families and the... Read more
From Cypherpunk To Citadel
How Crypto Moved from the Wild West to the Mainstream Financial SystemA long-form analysis of Bitcoin's journey from fri... Read more
ACB Securities: Building Scale, Trust & Innovation
ACB Securities: Building Scale, Trust and Innovation in Vietnam’s Capital MarketsACB Securities (ACBS) is emerging as ... Read more
War Risk Returns To Markets As VIX Surges
For most of the past year, global markets behaved as though geopolitical risk had largely disappeared. Inflation was eas... Read more
Stablecoin The Future Of Currency?
The payments system is undergoing a quiet but consequential shift. What was once the exclusive preserve of central banks... Read more
BoE Loosens Capital Rules
The Bank of England has taken a significant step towards easing post-crisis regulation by lowering its estimate of the c... Read more