The Manba Finance Limited initial public offering (IPO) opened for bidding on Monday, September 23, 2024. The public issue aims to raise ₹150.84 crore and will remain open for subscription until September 25, 2024. This IPO offers a fresh issue of shares, with the proceeds going directly to the company’s balance sheet.
Manba Finance IPO Price and Details
The company has set the IPO price band between ₹114 and ₹120 per equity share. Investors can apply for the shares in lots, each containing 125 shares.
The grey market is already buzzing with interest. As of today, shares of Manba Finance are available at a premium of ₹60 in the grey market, showing positive market sentiment.
Subscription Status
By 12:30 PM on the second day of bidding, the IPO had already been subscribed 43.81 times. The retail portion was booked 48.29 times, the non-institutional investor (NII) segment was subscribed 87.69 times, and the qualified institutional buyer (QIB) segment saw 3.05 times subscriptions.
Important Dates
- IPO Closing Date: September 25, 2024
- Allotment Date: September 26, 2024
- Listing Date: September 30, 2024 (on both BSE and NSE)
IPO Size and Registrar Information
The entire issue is composed of fresh shares, targeting a total capital raise of ₹150.84 crore. Link Intime India Pvt. Ltd. has been appointed as the registrar for this IPO.
Lead Manager and Financial Performance
Hem Securities Limited is the lead manager of this IPO. Manba Finance is a Non-Banking Financial Company (NBFC) specializing in funding two-wheelers and three-wheelers. The company has expanded into personal, business, and used car loans, working with over 1,100 dealers across six states.
The company’s assets under management grew from ₹4,958.3 million in FY22 to ₹9,368.6 million in FY24, with a strong CAGR of 37.5%. Profits after tax surged from ₹97.4 million to ₹314.2 million, with a significant improvement in Return on Capital Employed (RoCE) from 6.42% to 15.66%. Net NPA also decreased from 4.30% to 3.16%.
Should You Invest?
According to experts, Manba Finance has shown strong growth potential, especially in the expanding NBFC sector in India. However, the sector is competitive. Arun Kejriwal, Founder of Kejriwal Research and Investment Services, suggested that this IPO may offer short-term listing gains but is a high-risk investment due to its small size.
Akriti Mehrotra, Research Analyst at StoxBox, gave a “SUBSCRIBE” recommendation. She cited the company’s growth in vehicle financing and its plan to expand using IPO proceeds. The stock is priced at a P/BV of 2.3x, making it attractive for medium- to long-term investors.
Disclaimer: The views in this article are based on expert opinions. Investors should consult certified financial advisors before investing, as market conditions and risks vary.
I am Atul Sharma, As a full-time blogger, my focus is on delivering news articles on this platform. Your visit to my blog is highly appreciated. Thank you!