The sheen is back

Manappuram Finance promoter VP Nandakumar is just bought 1 lakh shares from the open market

It seems like VP Nandakumar is sensing better times in store for the gold loan business. The promoter of Manappuram Finance, the second-largest gold non-banking finance company (NBFC) in the country, bought 1 lakh shares from the open market. The current promoter holding in the company is around 32%, with just 1.13% locked in pledged shares. During FY12-FY14, the company faced severe asset quality issues, apparent from high auctions of ₹1,500 crore in FY14, even as assets declined 29%. After almost 18 months of turmoil, relatively steady gold prices and a stable regulatory environment are helping the domestic gold loan industry show signs of recovery. Over the past two quarters, Manappuram’s assets have grown 5% q-o-q and auctions moderated to normal business levels of 1-2% of assets. With a network of 3,200 branches and over 17,000 employees, analysts expect the company’s assets to grow at 10% CAGR to ₹11,200 crore by FY17. Looks like Manappuram is slowly finding its Midas touch. 


You don’t want to be left behind. Do you?

Our work is exclusively for discerning readers. To read our edgy stories and access our archives, you’ve to subscribe