Manappuram Finance Ltd, in a notice to the stock exchanges on Friday, clarified that the enforcement action against its promoter is not linked to the affairs of the listed entity.
On Thursday, the Directorate of Enforcement said it has frozen assets worth Rs 143 crore after a search was carried out at the company’s registered office.
The assets that were frozen include shares and some documents were seized, the agency said.
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Manappuram developer VP Nandakumar said in the notice that the investigation was not related to the company but to a private entity called Manappuram Agro Farms, which no longer exists.
Nandakumar said the agency froze the Rs 2 billion worth of Manappuram Finance shares it held but assigned a value of around Rs 140 crore, adding that it was reviewing legal options in the matter.
Shares of the company were trading 13% lower at 10:38 a.m. Friday, while Sensex was down 0.3%.