Yea, this is the big question. Whether this is political or not, if political it could go nowhere. But if its not political, could mean big trouble for the company.
150 crore accusation
That’s ridiculous
Such a big company with 400 cr quarterly profit won’t do any thing for 150 cr
Looks more political stunt especially as it’s in one particular state
6 Likes
Came to know about the ED raid from the thread, checked the fall, a 12% is big, so wanted to take a position purely based on the fall. Checked the chart, the fall looked more pronounced with a big red candle, couldn’t bring myself to buy, as except for the basic understanding of the business, I don’t follow the stock closely, also the price is also around 52W high, so not a wise bet if it falls more, also wouldn’t have bought much even if I had bought, so dropped the idea altogether.
Already having a position and looking at the current status is one thing, and initiating a position under these circumstances without a plan is another.
A psychological learning nevertheless.
2 Likes
If the raids are indeed politically motivated
Knowing how brute force one party has been for its political opponents across the board, i dont think it is a good sign.
Seeing how multiple politicians have suvvumbed under ed raids, i dont think manna has much option other than bending and changing political affliation.
If they dont do it immediately then i dont think its going to be in the interest of the company. If they bend then the other party might go against them.
Dont know how they will navigate this easily.
2 Likes
I think ED comes under central government and cannot be influenced by state politics. However I have searched for past promoter history and does not find any such malpractice.
I’m more worried if it’s political. They can go any extent to get what they want. When GVK refused to sell control of MumbainAirports to Adani, there came CBI and then came ED with a 754 crore scam case. Raided everything including promoters house. He was forced to sell it to Adani, and then the cases were dropped. If it’s political, it’s probably something big, to take the risk of involving ED that too in a listed company.
1 Like
Agree on this point… Remember the case of indiabulls housing finance, they were bombard with many cases and allegations untill its business go burst… A fast Growing housing fin company with high ROE, low NPA suddenly became kachra stock ecen though Nothing is proven…
Let’s hope they come out clean but if such instance like raids repeats in short term, it should be taken as big red alert as finance companies run more on trust than money…!
Disc: Invested
2 Likes
I think the rule came in 2012.
Manappuram promoters and top management was once caught for insider trading.
1 Like
That case was dismissed by supreme court in 2019
Eh? I don’t think. It was settled with SEBI by paying 6 crores without admitting insider trading.
They probably are. Muthoot had faced workers union strike due to low salary couple of years back, these unions were mostly CPM allied or CPMs own union. There was no such issue in Manappuram when both the company’s have similar pay.
Also VP Nandakumar is ezhava caste, which is the main vote bank of CPM in Kerala.
Anyway, ED comes under Central government, and it could be that CG has an issue with Manappuram favouring CPM.
1 Like
If I understand this correctly, the search is for another company related that had the same promoter and Malappuram Finance itself was not involved with MAGRO?
Raiding company and promoters house for 9.25 lakhs is a little too much.
2 Likes
4 Likes
its hard to draw conclusions from this, they say its 9.5 lakhs but news came out they freezed his assets around150 crores, now MFL intimated that it includes 19,29,01,996 equity shares held by him, which in itself is 2000 crores. (apparently ED valued it at 140 crores)
freezing include 19,29,01,996 equity shares in the Company held by him
Anyway, the only good part there is nothing against the company yet. It is all on VP Nandakumar, and his assets.
3 Likes
Interview from 2012 regarding the RBI letter and response
If this is true and all the information there is regarding, I don’t think there is nothing much to worry.
Disc - Going to open a small position at 103 levels, there has been an increase in gold price too.
3 Likes
A T20 match is currently in progress, and the company’s management has a clear vision . There are ongoing investigations by the ED and FIR. Investors who have faith in the management are buying the stock, while those who do not believe in it are selling.
bse has banned future buying and selling, so I have taken a cash position at 103.65. I have closely followed this company for the past five years and have confidence in its management. I believe that this is a great opportunity to buy at a discounted price, which may not last long. The management of the company is highly ethical and adheres to strict rules
5 Likes