The shares of one of India’s leading gold loan NBFC firm gained 5.6 percent to Rs 148.20 on Monday after the Kerala High Court quashed the FIR against the company’s Managing Director and CEO VP Nandakumar in a money laundering case. 

At 3:25 p.m., Manappuram Finance Ltd shares were trading at a price of Rs 147.20 a share, up Rs 7 or 5.03 percent on the BSE from the previous close price. The company has a market capitalization of Rs 12,459 crore. 

The Kerala High Court declared that it has nullified the FIR registered against V. P. Nandakumar, the company’s Managing Director and CEO, in connection with a money laundering case. 

On September 12, 2023, the Hon’ble Kerala High Court directed the Enforcement Directorate to return and release all original documents of the properties frozen pursuant to an order dated May 4, 2023, issued by the Enforcement Directorate under Section 17 (1-A) of the Prevention of Money Laundering Act, 2002 within 3 weeks of receipt of the High Court’s judgment. The company reported in its filing. 

To recall, on May 5, 2023, the Enforcement Directorate (ED) confiscated assets worth Rs 150 crore belonging to VP Nandakumar as part of a money laundering probe. 

The company revenue climbed by 35 percent year on year, from Rs 1,501 crore in Q1FY23 to Rs 2,026 crore in Q1FY24. During the same period, the company’s net profit increased by 77 percent, from Rs 281 crore to Rs 498 crore. 

The Company’s net profit margin increased from 21.92 percent in FY22 to 22.42 percent in FY23, while the operating margin rose from 62.61 percent to 63.26 percent during the same period. 

Manappuram Finance profitability ratios are in a strong position with a return on equity of 15.51 percent and a return on capital employed of 25.53 percent. 

The company promoters currently hold 35.2 percent of the company, while Foreign institutional investors hold 30.73 percent and Domestic institutional investors hold a 10.69 percent stake.

Manappuram Finance is a Non-Banking Finance Company (NBFC) that offers a variety of fund-based and fee-based services such as gold loans and money exchange facilities. 

Written by Omkar Chitnis


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