Manappuram Finance rallies on over 5% stake buys by PE fund

The PE equity firm bought about 50 million shares or 5.94% in gold finance company on June 22, from the open market,

Manappuram Finance has rallied 6% to Rs 28.80, extending its 24% surged in past four trading sessions, after Baring India Private Equity acquired 5.94% stake in the company.

The private equity firm bought about 50 million shares representing 5.94% of Manappuram Finance equity on June 22, from the open market, the gold finance company informed the BSE. On June 22 closing price, Baring India picked up stake in Manappuram Finance for about Rs 123 crore.

Meanwhile, credit rating agencies Crisil and Brickwork Ratings have removed the company from their "rating watch with developing implications", indicating a degree of safety regarding the company's ability to fulfill its debt obligations.

The stock opened at Rs 28, is currently trading at day’s high level. As many as a combined 3.83 million shares have already changed hands on the counter in opening trades, against an average sub 6 million shares that were traded daily in past two weeks.