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Manba Finance IPO: The initial public offering (IPO) of Manba Finance Limited opened on Monday, September 23, 2024. The public issue worth ₹150.84 crore will remain open until 25 September 2024. This means the initial public offer will remain open for bidding until Wednesday this week. The NBFC has fixed the Manba Finance IPO price band at ₹114 to ₹120 per equity share. The book build issue is completely fresh; net proceeds will go directly into the company’s balance sheet.
Meanwhile, shares of the NBFC are available for trade in the grey market. According to stock market observers, Manba Finance shares are available at a premium of ₹60 in the grey market today.
Manba Finance IPO subscription status
After day 1 of bidding, the public issue had been booked 23.79 times, the retail portion of the public issue had been subscribed 27.71 times, and the NII segment had been booked 43.18 times. The QIB segment has been booked 2.36 times.
Important Manba Finance IPO details
1] Manba Finance IPO GMP today: According to market observers, the NBFC’s shares are available at a premium of ₹60 in the grey market today.
2]Manba Finance IPO price: The NBFC has fixed the Manba Finance IPO price band at ₹114 to ₹120 per equity share.
3]Manba Finance IPO date: The book build issue will remain open until September 25th, 2024.
4]Manba Finance IPO size: The book build issue is complete fresh shares, which aims to raise ₹150.84 crore.
5]Manba Finance IPO lot size: Bidders can apply in lots, and one lot of the public issue will comprise 125 company shares.
6]Manba Finance IPO allotment date: The most likely Manba Finance IPO allotment date is 26th September 2024.
7]Manba Finance IPO registrar: Link Intime India Private Limited has been appointed official registrar of the public issue.
8]Manba Finance IPO listing date: The book build issue is proposed for listing on BSE and NSE, and the most likely date for share listing is 30th September 2024.
9]Manba Finance IPO lead manager: Hem Securities Limited has been appointed lead manager of the public offer.
Manba Finance IPO: Good or bad for investors?
10]Manba Finance IPO review: On whether one should apply for the public issue or not, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The issue is small in size, and the merchant banker has expertise in handling SME IPOs. However, due to the small size of the public issue, the market is expected to respond positively. However, the NBFC space is highly competitive, so high-risk investors can apply for the public issue for listing gain only.”
Giving a ‘subscribe’ tag to the public issue, Akriti Mehrotra, Research Analyst at StoxBox, said, “The NBFC industry in India is set for robust growth across segments like two-wheelers, three-wheelers, and MSME lending, fueled by rising finance penetration and consumer demand. Manba Finance Ltd. specializes in funding for two- and three-wheelers and has recently expanded into personal, business, and used car loans, operating through over 1,100 dealers across six states. Its assets under management increased from ₹4,958.3 million in FY22 to ₹9,368.6 million in FY24, representing a CAGR of 37.5%. Profit after tax surged from ₹97.4 million to ₹314.2 million, with return on capital employed (RoCE) margins improving from 6.42% to 15.66%. Additionally, net NPA decreased from 4.30% to 3.16%. With an average borrowing cost of 11.98% and lending rates above 20%, the company plans to leverage current issue proceeds for further expansion. Priced at a P/BV of 2.3x, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.”
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.