Manappuram Finance Limited announced key strategic decisions following its board meeting held on December 26, 2025. The company appointed a new Group Chief Financial Officer and approved significant investments in its subsidiary, while also authorizing enhanced borrowing limits to support business expansion.

Leadership Appointment

The board appointed Mr. Buvanesh Tharashankar as Group Chief Financial Officer, effective December 26, 2025, based on recommendations from the Nomination, Compensation and Corporate Governance Committee. He has been designated as Key Managerial Personnel, while Ms. Bindu A.L. will continue as Chief Financial Officer and Key Managerial Personnel of the company.

Buvanesh brings nearly three decades of experience across leading banking and financial services institutions. His expertise spans financial strategy, capital and balance sheet management, regulatory interface, governance, investor engagement, and business analytics. He previously held senior roles at RBL Bank as Chief Financial Officer, Jana Small Finance Bank as Chief Financial Officer, and Citibank in India and overseas.

Strategic Investment in Subsidiary

The board approved an additional investment of up to ₹250.00 crores in Asirvad Micro Finance Limited (AMFL), a subsidiary of the company. This investment will be made in single or different tranches to support AMFL's capital expenditure and working capital requirements. AMFL operates in microfinance, gold loans, and MSME loans business segments.

Borrowing Limit Authorization

The board authorized an increase in the company's borrowing limits under Section 180(1)(c) of the Companies Act, 2013. The authorization allows the company to raise funds up to ₹75,000.00 crores, subject to shareholder approval. This enhanced borrowing capacity will support the company's growth initiatives and operational requirements across various debt instruments including convertible debentures, secured premium notes, and bonds.

Stock Performance

Shares of Manappuram Finance ended 0.22% higher on the National Stock Exchange. The stock touched a fresh 52-week high of ₹318.90 during the trading session. The stock has risen for seven consecutive trading sessions, delivering cumulative gains of nearly 11% during this period.

Extraordinary General Meeting

The board has scheduled an Extraordinary General Meeting (EGM) for Thursday, January 22, 2026, at 11:00 AM through Video Conferencing facility. The EGM will seek shareholder approval for the resolutions mentioned in the notice, including the borrowing limit authorization.

Manappuram Finance and Muthoot Finance shares surged to fresh all-time highs on Wednesday, with gains of up to 7% as domestic and global gold prices touched new records. The rally reinforced investor appetite for gold-backed lenders amid a broader bullion surge across markets.

Stock Performance Highlights

Both gold loan companies delivered strong intraday performance, scaling fresh peaks on the BSE:

Gold Price Surge Drives Market Sentiment

The rally in gold financiers mirrors sharp gains in bullion prices across markets. Gold futures with February expiry on the Multi Commodity Exchange of India (MCX) hit a lifetime high of ₹138,676.00 per 10 grams on Wednesday. Contracts with April and June expiry also scaled fresh all-time highs:

Globally, spot gold climbed to a record $4,439.00 per ounce, buoyed by growing expectations of further US interest rate cuts and heightened safe-haven demand. Frictions in Venezuela, where the US has blockaded oil tankers, have added to the metal's appeal.

Exceptional Year-to-Date Performance

The surge in bullion has translated into outsized gains for gold loan companies:

Brokerage Outlook and Operating Momentum

Motilal Oswal Financial Services highlighted Muthoot Finance as among the strongest gold loan franchises in the country, reflected in its industry-leading growth and best-in-class profitability. The brokerage noted that Muthoot delivered a broad-based earnings beat in the quarter, even after adjusting for one-offs in interest income. Key performance drivers included:

• Strong gold loan growth momentum
• Improved asset quality due to recoveries from the non-performing asset pool
• Expanded net interest margins and spreads driven by higher yields
• Decline in the cost of funds

For Manappuram Finance, analysts at Axis Direct said in a Q2 result update that the company will continue to prioritize accelerated growth in its gold loan portfolio, driven by higher ticket sizes and expectations of strong customer additions. The brokerage noted that while aligning gold loan yields with peers could weigh on net interest margins, this would be offset by a declining cost of funds, helping the company maintain margins at current levels.

Industry Dynamics and Future Outlook

Both companies have benefited from improving demand for gold loans amid industry-wide tightening in unsecured credit. Motilal Oswal said the favorable outlook for gold loan demand positions Muthoot Finance well to sustain its growth momentum. For Manappuram Finance, Axis Direct indicated that the non-gold portfolio is likely to consolidate before resuming growth in a calibrated manner as the company reassesses profitability and asset quality.

As gold prices continue to push deeper into uncharted territory, investors are turning to lenders most closely tied to the metal, driving continued interest in the gold loan sector.