The problem is that the continuous issues that Asirvad faces reflect the management quality and competency.
Leaving the ED issues aside, while Muthoot Microfin has been able to list without a hitch, Asirvad has been in the SEBI approval loop for years. Either they don’t meet some listing criterion or the valuations are not conducive to the IPO at the time, is my guess.
Now the RBI’s actions again reflect the inability to work under the purview of the regulator. Which can be potentially problematic for the gold business as well.
Yes it is difficult to change one’s image in the market. Even SFBs will face the same problem when they become majority diversified and secured lender, the market may still see them as risky microlenders for years.
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