Manba Finance Limited’s Initial Public Offering (IPO) opened today, Monday, 23rd September, 2024, for investment.
The IPO, valued at ₹150.84 crore, will remain open until 25th September 2024. This means investors can bid from Monday to Wednesday.
Impressively, the IPO was fully subscribed within just one hour of opening.
The Non-Banking Financial Company (NBFC) has set the price band for the Manba Finance IPO at ₹114 to ₹120 per equity share.
This IPO is a fully fresh issue, meaning all the funds raised will directly go to the company’s balance sheet.
In the grey market, shares of Manba Finance are trading at a premium of ₹64, which could result in a 54% gain upon listing.
Stockbox Research Analyst Akriti Mehrotra has given a “subscribe” rating to the IPO, indicating confidence in its potential.
Strong Investor Response
By 3:12 pm on the first day of bidding, the IPO had been subscribed 17.41 times.
The retail portion was subscribed 22.13 times, the Non-Institutional Investors (NII) segment 27.37 times, while the Qualified Institutional Buyers (QIB) segment was subscribed 1.67 times.
The company plans to raise ₹150.84 crore through this offering. Investors can apply for a minimum lot, with each lot consisting of 125 shares.
The tentative allotment date for the IPO is 26th September 2024, with Link Intime India Private Limited acting as the registrar and Hem Securities Limited as the lead manager for the IPO.
Listing on BSE and NSE
Manba Finance’s IPO is proposed to be listed on both the Bombay Stock Exchange (BSE)
and the National Stock Exchange (NSE), with the expected listing date set for 30th September 2024.
Manba Finance primarily provides loans for two and three-wheelers and has expanded into personal, business, and used car loans.
The company operates through over 1,100 dealers across six states.
Its assets under management grew from ₹4,958.3 million in FY12 to ₹9,368.6 million in FY14, representing a Compound Annual Growth Rate (CAGR) of 37.5%.
The company’s profit after tax increased from ₹97.4 million to ₹314.2 million, and its Net Non-Performing Assets (NPA) reduced from 4.30% to 3.16%.
