Cash News
Shares of Manba Finance made a strong Dalal Street debut on Monday as the shadow lender was listed at Rs 150 on BSE, a premium of 25 per cent over the issue price of Rs 120 apiece. Similarly, the stock kicked off its maiden trading session on NSE with a premium of 20.83 per cent at Rs 145 over the given issue price.
The listing of Manba Finance has been below the expectations. Ahead of its debut, shares of Manba Finance were commanding a grey market premium (GMP) of 38-40 per share suggesting a listing pop of up to 35 per cent for the investors. However, it was around Rs 64-65 on the first day of the bidding.
The IPO of Manba Finance ran for bidding between September 23 and September 25. The shadow lender had offered its shares in the fixed price band of Rs 114-120 per share with a lot size of 125 shares. The company raised a total of Rs 150.84 crore from its IPO, which was entirely a fresh share sale of up to 1,25,70,000 equity shares.
The issue was overall subscribed a sound 224.10 times. The allocation for non-institutional investors was booked a whopping 511.65 times. The quota for qualified institutional bidders (QIBs) was subscribed 148.55 times. The portions reserved for retail investors saw bidding for 144.03 times during the five-day bidding process.
Established in 1998, Manba Finance is a non-banking finance company (NBFC) 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.
Brokerage firms mostly had a positive view on the issue. Hem Securities was the sole book running lead manager of the Manba Finance IPO, while Link Intime India was the registrar for the issue.
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