MANAPPURAM FINANCE - NEIGHBOUR ' S ENVY OWNERS PRIDE ?

Listed businesses owned by first generation entrepreneurs prone to higher risk compared with businesses owned by families with decade experience. Many such examples happened even in our stock market in recent times and some of them even threatened the existence of such businesses .Story of the managing director of Orchid Chemicals Mr K Raghavendra Rao is one such example, but he escaped ( so far ) with the help of  the deep pockets of Cyrus Poonawalla. The recent one in this episode is the happenings in Manappuram Finance ,which is one of the biggest wealth creator from the mid cap space in the last five years.By now, all of you may be  aware about the happenings.I strongly feels some foul play and planned attack  by business rivals or vested interest parties in this whole episode .Being a person keenly watching the growth of this company  I don’t believe that the promoters of Manappuram will do anything to cheat the share holders or  its investors .( Let time proves whether I am true or false) .Actually they try to utilise a loophole available in the system  to raise funds  for another company of the same promoter which is entirely  a separate legal entity.Whenever RBI issued a notice ,promoter express his willingness to repay the amount with interest at any time. If our media and authorities like RBI , SEBI ..etc  are  vigilant like this ,where were they  at the  time of  big frauds in the past ? . We have many past experience with Sahara’s , Essar Group,Sterlite,Sterling Group..etc.. but none of them become an issue and not sensationalized like this .Authorities' silence in the past and media’s  and equity analyst’s aggressiveness  this time creating many doubts.For example ,when there is some rebound in its share price either business channel s ( mainly CNBC) or PINC  papers will come out with some day old negative news on it .Take today’s case where its share price moved up more than 5 % today ,ET online edition published a news

“ CARE DOWNGRADES RS.1550 CRORE NCD OF MANAPPURAM FINANCE” .But the fact is that this downgrade happened about two days back and the report is available in CARE website day before yesterday onwards. This is only a small example and when we read between lines I feels some strong vested interest parties  are playing to prevent the aggressive growth of this company with even the help of some Government Authorities . Time will tell who will win , but I feels the faith of Keralites ( where majority of its branches are functioning )in the promoter of Manappuram Group will help the company to recover from this setback  and grow without any  black spots going forward to reach its target of 3000 branches by the end of this financial year.

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THIS IS ONLY A PERSONAL  VIEW AND NOT A RECOMMENDATION TO BUY OR SELL THE SHARES OF THIS COMPANY.