Shares of Manappuram Finance today surged by over 9 per cent, bouncing back smartly after a 20 per cent plunge yesterday amid a RBI warning to the company against accepting any public deposits.
After a weak opening this morning, the stock posted a smart recovery and settled at Rs 49.30 at BSE, up 8.35 per cent from its yesterday closing price.
At the NSE, the stock closed 9.52 per cent higher at Rs 49.45.
A strong broader market also aided the uptrend in the stock, with the BSE barometer Sensex ending the day 84.87 points higher at 17,707.32.
The Reserve Bank of India (RBI), in a press release posted on its website, had cautioned Manappuram Finance against accepting public deposits as the firm has converted itself into a non-deposit taking NBFC.
Manappuram in a filing to the BSE today said that the "company does not accept any public deposits. However, it is accepting investments through secured non-convertible debentures and subordinate bonds, which do not fall under the definition of public deposits."
Board of directors of the company will meet on February 10, at Valappad in Thrissur, Kerala, to discuss the press release of the RBI.
The central bank had said it has come across instances of acceptance of deposits by the Kerala-based firm. RBI further said that acceptance of deposits either by Manappuram Finance or by its group company Manappuram Agro Farms (MAGRO) is punishable with imprisonment.