Manappuram Finance slumps

about 2 years ago
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Three days ago, Manappuram Finance had hit an all-time high of Rs.141 but today, it breached the 10% LC at Rs.123.90; it has recovered from this low point of the day and is now rallying at Rs.132 levels.

The market is as such spooked by the crisis brewing in the NBFC sector thus at this point of time, even an inkling of some negative news, the marketmen are scampering away.

There is not liquidity crisis in Manappuram but a news report in Business Standard which stated that SEBI has issued a show cause notice to five asset management companies (AMCs) - SBI Fund Management, ING Mutual Fund (now Birla Sunlife) and BNP Paribas, along with Ambit Capital, its former CEO Saurabh Mukherjea and MFL on charges of using price-sensitive information for trading in the scrip of Manappuram Finance in March 2013. 

The report says that these AMCs decision to exit the stock of Manappuram during the period in question appears to be based on an Ambit research report, which was ‘leaked’ to them before the formal earnings announcement for the fourth quarter (Q4) of 2012-13. It was alleged that the MFL management organised a conference call with fund managers and research analysts, in which they were given the profit warning for Q4.” 

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