Manappuram Finance extends rally on denial of loans recall
Manappuram Finance has hit the 10% upper circuit at Rs 34.95, extending its Monday’s 5% rally, after the company denied news reports that it will recall loans to meet the recent Reserve Bank of India (RBI) notification of limiting Loan to Value Ratio of 60%.
“The RBI circular is prospective in nature and it does not affect the loans disbursed prior to that date. Therefore there is no requirement for the company to recall any of the loans already disbursed and hence the company has no plans to recall its loan before the contracted term," Manappuram Finance said in a filing to the stock exchanges.
The company has high capital adequacy of 18.37% as of December 31, 2011 as against the stipulated norm of 12% capital adequacy to be achieved by April 2014, it added.
A combined 9.14 million shares have already changed hands on the counter so far, and there are pending buy orders for 1.21 million shares on the NSE and BSE.