Muthoot Finance and Manappurram Finance, the two big 'Ms' of the NBFC world, have become household names over the past decade or so. These two Kerala-based financial institutions have expanded significantly over the years.
Gearing Up For IPOs
Now, the furthering of the official proceedings for each of their subsidiaries has resulted in a decline in the value of their shares at the equity markets. It was last week that Manappurram's Asiravd Microfinance, a microfinance entity, got SEBI approval for its own Initial Public Offering (IPO).
Later, on 6 May, reports emerged indicating Belstar Microfinance, a microfinance arm of Muthoot Finance, has also made its move closer to a listing, as it submitted a DRHP or Draft Red Herring Prospectus.
It is to be noted, that both of these companies, Muthoot and Manappurram are themselves listed on the market.
However, the fortunes of these shares appear to be on an uncertain terrain, as the value of these shares declined marginally over the past week. But investors were in for a rude shock on the first day of trading, on 6 May, as Manappurram shares slipped a massive 1.73 per cent, in the early hours of the day. Muthoot, on the other hand, also saw its shares drop by 0.90 per cent on 6 May.
The IIFL Fall
This comes days after their respective shares saw a slight increase in their fortunes, after the RBI ordered IIFL Finance, asking IIFL Finance to stop new gold-backed lending and related off-balance-sheet funding transactions.
IIFL itself is doing well at the markets, as the fortunes slumped 2.18 per cent further adding to the company's woes, which has already been downgraded by Fitch Ratings.
The Indian markets are trading in a mix, as BSE Sensex was trading in green, gaining 0.22 per cent, climbing to 74,038.66 points (10:04 IST). Meanwhile, NSE Nifty was trading at 22,460.65, having lost a marginal 0.07 per cent, in the early hours of Monday's trade.
