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The initial public offering (IPO) of Manba Finance has seen strong interest from investors as it was fully subscribed on the day it opened for bidding.
Manba Finance Limited, founded in 1998, offers a variety of financial services, including loans for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, along with small business and personal loans.
The IPO of Manba Finnace is a fresh issue of 1.26 crore shares and closes for subscription on September 25, 2024.
Manba Finance IPO was subscribed 39.56 times overall by 11:39 AM on September 24, 2024. The retail category saw a subscription of 44.10 times, while the QIB category was subscribed 3.05 times, and the NII category reached 77.65 times.
The price range for Manba Finance’s IPO has been set between Rs 114 and Rs 120 per share. Investors are required to apply for a minimum of 125 shares. For retail investors, the minimum investment amount is Rs 15,000.
Latest grey market premium (GMP) for Manba Financen IPO
The latest grey market premium (GMP) for the Manba Finance IPO stands at Rs 64, as of 11:01 AM on September 24, 2024.
With a price band set at Rs 120, the estimated listing price for Manba Finance shares is expected to be around Rs 184 (calculated by adding the cap price to the current GMP). This suggests a potential gain per share of 53.33%.
While the projected 53.33% gain looks attractive for investors seeking quick returns, it’s important to remember that grey market premiums can fluctuate, and actual listing prices may vary due to market conditions on the day of listing.
Should you subscribe?
An IPO report from Anan Rathi said that Manba Finance Bank Ltd has established relationships with more than 1100 dealers with the ability to expand to new underpenetrated geographies (currently present in 66 locations spread across six states in western, central and north India) and a Technology drive and scalable operating model with quick Turn Around Time (TAT) for loan processing (5.30 days as of March 31, 2024).
“At the upper price band company is valuing at P/BV of 1.70x with a market cap of Rs 6,028 million post issue of equity shares and return
on net worth of 15.66%. We believe that the IPO is fairly priced, hence we recommend a ‘Subscribe-Long Term’ rating to the IPO,” said the report.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)