Revised Outcome of Board Meeting dated 09th May 2025
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Manappuram Finance revised its May 9, 2025 board meeting outcome to correct a clerical error: the approved investment of up to Rs. 500 crores in subsidiary Asirvad Micro Finance Limited (AMFL) will be in equity shares, not Compulsorily Convertible Preference Shares as originally stated. The company will hold up to 98.11% in AMFL after the infusion (from 97.60% currently), at Rs. 93 per share, to support AMFL's capex and working capital needs. The board also approved audited FY25 results (auditors gave an unmodifed opinion), declared a Rs. 0.50 (25%) interim dividend per share with May 15, 2025 as record date, appointed new Secretarial Auditors for FY26-30, and revised remuneration for the MD and Executive Director subject to shareholder approval. AMFL's turnover grew modestly to Rs. 2,705.43 crores in FY25 from Rs. 2,681.31 crores in FY24.
The correction is administrative only and does not change the substance of the Rs. 500 crore subsidiary investment. Shareholders benefit from the Rs. 0.50 per share interim dividend. The capital infusion strengthens AMFL's growth capacity, while the increased long-term borrowings (from Rs. 9,158 crores to Rs. 11,110 crores) warrant attention to leverage, though the company retains a strong AA+ credit rating.