Shares of Manappuram Finance Ltd crashed by 8% on 10 January after the capital market regulator put the Asirvad Microfinance IPO on hold.

The market regulator, SEBI (Securities and Exchange Board of India), has halted the IPO due to these reasons, stating that they had raised 3 queries against Asirvad MFI IPO, of which 2 have already been resolved.

However, the third query requires a legal option and could take around 15 to 30 days to resolve.

The company had also planned to raise up to Rs 300 crore in a pre-IPO round. If the placement is completed, the fresh issue size will be reduced.

Asirvad Microfinance was founded in 2008 with only two branches located in Tamil Nadu, and it has expanded its reach across India over the years. They now have a strong presence across 22 states and 4 union territories with a strong network of 1,684 branches as of 31 March 2023.

Asirvad Microfinance caters to more than 3.25 million active borrowers in the microfinance portfolio that constitutes a majority of its assets under management, whereas they also cater to loans against gold and MSME loans.

At 3:30 pm, the shares of Manappuram Finance closed 4.84% lower at Rs 168 on NSE.