Manappuram Finance

• On May 4, 2023, the company reported to stock exchanges that the search operation by ED is mainly with reference to the deposits accepted by a promoter entity Manappuram Agro Farms (MAGRO) prior to 2012. As per the company, the promoters had repaid almost all of those deposits except Rs 9.25 lakhs which could not be repaid by them despite MAGRO’s continuous efforts.

• On May 4. 2023, ED via its Twitter handle disclosed that they have frozen assets of ₹143 cr in the search operation

• On May 5, 2023, the company disclosed to stock exchanges that promoter, Mr VP Nandakumar, that he has received an order of freezing his personal assets including 19,29,01,996 equity shares in the Company held by him
  event related to MAGRO in Feb-March 2012 unfolded In March 2012, the promoter sold shares for about ₹144.65 cr to Baring India, Sequoia Capital, Siguler Guff etc.
  Now,

• The amount of money raised for repayment of deposits in 2012 (₹144 cr) and the amount of assets frozen by ED in 2023 (₹143 cr) seem approximate. ED has frozen more than 19 cr shares held by the promoter with a market value exceeding ₹1,900 cr; however, govt. agencies usually value shares at face value, which is ₹2 for MFL indicating a valuation of ₹38 might have been assigned to them by ED.

• The disclosure by the company on May 4, 2023, indicates that out of about ₹144 cr of depositors, almost all had already been repaid and only about ₹0.09 cr (₹9.25 lac) are remaining.

Until now, it seems that the ED raid is for an old issue where the promoters have fulfilled their promise of repaying more than 99.9% of depositors. In such repayments, it is difficult to find all the parties, which is evident by a large amount of unclaimed deposits, shares, funds, insurance proceeds etc. lying with numerous govt. agencies.
disclosure-invested