Manappuram Finance slumps 14% as ED raids premises in money laundering case

As per PTI, the raids were being undertaken to gather evidences related to allegations that the company collected public deposits worth over Rs 150 crore in contravention of RBI guidelines

Shares of non-banking finance company Manappuram Finance slumped 13.8 per cent to an intra-day low of Rs 111.70 on the BSE on Wednesday after reports said the Enforcement Directorate (ED) conducted searches at the company's premises in a money laundering investigation. 

As per news agency PTI, the law enforcement agency was conducting searches at four premises of the company in Kerala, including those of its promoters on Wednesday. 

The raids were being undertaken to gather evidences related to allegations that the company collected public deposits worth over Rs 150 crore in contravention of Reserve Bank of India (RBI) guidelines, it quoted officials as saying. 

That said, the company recently said it is mulling to raise funds via borrowings including through various debt securities in onshore /offshore securities market. 

"The board of directors may consider and approve issuances of debt securities during the month of May, 2023, subject to such terms and conditions including the issue price of debt securities, as the board / respective committee may deem fit," it said in a filing on April 29. 

Moreover, the board will meet on May 12 to consider the approval of the firm's March quarter (Q4FY23) results and the declaration of an interim dividend.  

The stock had hit a 52 week low of Rs 81.50 on June 20, 2022 and its latest 52-week high of Rs 133.90 was notched recently on April 19.