The Manappuram group of companies, already in the news because of Reserve Bank of India strictures, got more unwanted attention after the wife of a director of Manappuram Finance sold a little over 80 per cent of her holdings in the company. This was after the RBI warned the gold loan firm for having accepted public deposits.
Sarada Sankaranarayanan, wife of independent director A R Sankarana-rayanan, has sold a total of 1.363 million shares of her total holding of 1.663 mn shares, in two tranches, according to the disclosure on the Bombay Stock Exchange. About 500,000 shares were sold at Rs 57.75 on Monday and the remaining shares at Rs 48.17 yesterday. Shares of Manappuram declined 6.9 per cent, or Rs 3.4 to Rs 45.9 on Thursday. The stock had crashed 20 per cent on Monday after the central bank raised objections over the public deposit issue.
V P Nandakumar, chairman and managing director of Manappuram Finance, said shares were sold as the independent director required money due to his deteriorating health; it had nothing to do with the RBI order. Both Sankarana-rayanan and his wife had crossed the age of 80 years, he pointed out. “Sanka-ranarayanan has already expressed his desire to resign from the board. But the board has requested him to continue till the next annual general meeting,” said Nandakumar. “We had also requested him to sell his holding once he exits from the company, but he wanted money as his health situation was deteriorating.”
The chairman has also said the director is in no way related to the promoter or the promoter group of Manappuram Finance. Shares of gold loan companies were under pressure on Thursday on reports that RBI was planning to tighten norms in this segment. Muthoot Finance, another gold loan company, fell 5.6 per cent to Rs 160.15.
