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The Initial Public Offering (IPO) of Manba Finance Limited opened today, offering investors a fresh opportunity to enter the financial sector. The public issue, worth ₹150.84 crore, will remain open for subscription until 25th September 2024. Below are the key details and expert insights about this IPO.
Manba Finance IPO key highlights
Issue size: ₹150.84 crore
IPO price band: ₹114 to ₹120 per equity share
IPO dates: 23rd September 2024 to 25th September 2024
Lead manager: Hem Securities Limited
Registrar: Link Intime India Private Limited
Stock exchanges for listing: BSE and NSE
Listing Date (Tentative): 30th September 2024
Share allocation and subscription status
The Manba Finance IPO consists entirely of fresh shares, aiming to raise ₹150.84 crore to strengthen the company’s capital base. Promoters currently hold a 100% stake in the company, and the issue allocation is divided into:
Qualified Institutional Buyers (QIBs): 50% of the issue
Retail Individual Investors (RIIs): 35% of the issue
Non-Institutional Investors (NIIs): 15% of the issue
On the opening day, the IPO witnessed an impressive subscription, with the issue getting subscribed 11.20 times by 1 PM. The non-institutional investor portion saw the highest demand, with 16.01 times subscription, followed by 14.69 times for retail investors, and 1.50 times for qualified institutional buyers.
Manba Finance shares are actively trading in the grey market, where stock market observers report a premium of ₹60 to ₹64 per share. This translates to a 53% premium over the upper price band of ₹120, indicating strong demand ahead of the official listing.
Manba Finance Limited is a Non-Banking Financial Company (NBFC) based in Maharashtra, specializing in loans for two-wheelers, three-wheelers, used cars, and small businesses. The company operates in 66 locations across six states—Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
Over the past two years, the company has demonstrated robust financial growth:
Assets Under Management (AUM): Increased to ₹936.85 crore in FY24, up from ₹495.82 crore in FY22, reflecting a CAGR of 37.5%.
Profit After Tax (PAT): Grew significantly by 89.5%, reaching ₹31.41 crore in FY24 from ₹16.58 crore in FY23.
Revenue: Increased by 44% to ₹191.58 crore in FY24, up from ₹133.32 crore in FY23.
Manba Finance’s lending model, which includes an average borrowing cost of 11.98% and lending rates above 20%, has also contributed to its strong return on capital employed (ROCE) margins, improving from 6.42% to 15.66%.
Manba Finance’s IPO has garnered significant attention from both institutional and retail investors, with its high grey market premium and strong first-day subscription figures indicating investor confidence. The company’s steady financial growth, combined with its expansion into personal and business loans, suggests it is well-placed to benefit from the rising demand in India’s NBFC sector. Investors looking for a high-growth opportunity, particularly in the lending space, may find Manba Finance’s IPO a promising investment.