Manba Finance IPO Debuts With 25% Premium At Rs 150

The initial public offering (IPO) of Manba Finance debuted on the bourses with a premium of 25 per cent. The issue listed at Rs 150 per equity share on the National Stock Exchange (NSE) against its price of Rs 120 per equity share.

During its three day subscription window, the issue allured subscription more than 200 times accounting for the bids worth Rs 23,656 crore. Retail category was also subscribed 143 times with bids worth Rs 7,600 crore.

The Rs 150.84 crore IPO consisted exclusively of fresh issues with the price band fixed at Rs 114 to 120 per equity share.

Hem Securities was the book running lead manager, while Link Intime India was the registrar to the offer.

IPO Objectives

The net proceeds of Rs 150.84 crore from the fresh issue will be utilised towards funding capital expenditure requirements for purchase of equipment and general corporate purposes.

Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders. 

Firm’s Financials
Manba Finance registered the revenue of Rs 973 crore in FY 23-24 against Rs 787 crore in FY 22-23. While, the profit after tax (PAT) increased to Rs 31.42 crore in FY 24 against Rs 16.58 crore in FY 23.

Overall, the revenue increased by 44 per cent, whereas PAT climbed 90 per cent between FY 23 and FY 24.

Its assets under management (AUM) grew from Rs 4,958.3 million in FY22 to Rs 9,368.6 million in FY24, reflecting a CAGR of 37.5 per cent.

Net NPA declined to 3.16 per cent. With borrowing costs at 11.98 per cent and lending rates above 20 per cent, the company plans to use issue proceeds for further expansion.