Cash News
Ahead of the IPO listing, the company’s shares traded with a premium of ₹38 in the unlisted market. Considering the upper price band of ₹120, the stock was expected to list at a premium of 32% over the issue price.
The grey market is an unofficial platform for trading in IPO shares till the listing. Investors generally look at grey market to know the possible listing price of IPO.
The IPO, which was for subscription from September 23 to September 25, received overwhelming response from investors with an overall subscription of over 200 times at close.
Manba Finance had already raised ₹45 crore from eight institutional investors through its anchor book.
The company sold its shares in a fixed price band of ₹114 to ₹120 per share for its maiden public offer.
The offer included entirely a fresh issue of 1.25 crore equity shares with no offer-for-sale component.
The company proposes to use the net proceeds for augmenting its capital base to meet its company’s future capital requirements towards onward lending, general corporate purposes and net proceeds.
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 acted as the sole book-running lead manager to the IPO, while Link Intime India was the registrar.