Manba Finance IPO subscribed 210x on Day 3 so far; NII portion booked 500 times #CashNews.co

The initial public offering (IPO) of Manba Finance Ltd. continued to attract a solid response from the investors during the third and final day of the bidding process.

According to the data, the investors placed bids for 185 crore equity shares, or 210.46 times, compared to the 87.99 lakh equity shares offered for the subscription by 3.45 pm on Wednesday, August 29. The three-day bidding for the issue, which kicked off on Monday, concludes today.

The category for qualified institutional bidders (QIBs) was subscribed 141.53 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 502.87 times. The quota set aside for retail investor was subscribed 124.52 times as of the same time.

The grey market premium of Manba Finance has remained firm, despite the volatility in the broader markets on the back of solid bidding from investors. Last heard, shares of the company were commanding a premium of ₹58 in the unofficial market, suggesting a listing pop of about 48% for the investors.

The company has raised ₹45 crore from eight institutional investors via its anchor book.

The company sold its shares in the range of ₹114 and ₹120 for its maiden public offer. Through the IPO, the company plans to raise ₹150 crore.

The offer included entirely a fresh issue of 1.25 crore equity shares with no offer-for-sale component.

The Maharashtra-based company is going to utilise the net fresh issue funds to augment its capital base to meet future capital requirements.

Established in 1998, Manba Finance is a non-banking finance company (NBFC-BL) offering financial solutions for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans and personal loans.

The company’s revenue increased by 44% and profit after tax (PAT) rose by 90% between the financial year ending with March 31, 2024 and March 31, 2023.

Hem Securities Ltd. is the book running lead manager to the IPO, while Link Intime India Private Ltd. is the registrar.

The allotment for the Manba Finance IPO is expected to be finalised on September 26, while it will list on BSE, NSE with tentative listing date fixed as September 30, 2024.