Manba Finance IPO To Close Today; Subscription Crosses 73 Times

The initial public offering (IPO) of Manba Finance which opened on 23 September with an offer size of over Rs 150 crore received heavy subscription before it closed on 25 September.

During its two day subscription window, the issue allured subscription more than 70 times accounting for the bids worth Rs 7,776 crore. Retail category was also subscribed with bids worth Rs 3,748 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.

The IPO opened on 23 September and is scheduled to close on 25 September. The allotment for the issue will be finalised on 26 September followed by its listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 30 September.

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

Retail investors can bid for the maximum of 13 lots and upto multiple of 125 shares. Investing in one lot will require the minimum capital of Rs 15,000.

Expert Note
“The NBFC sector in India is set for robust growth, driven by rising finance penetration and consumer demand in segments like two-wheelers, three-wheelers, and MSME lending. Manba Finance, primarily focused on funding two-wheelers and three-wheelers, has expanded into personal, business, and used car loans, offering services through 1,100 dealers across six states. Priced at a price to book value of 2.3 times based on FY24 book value, we recommend a ‘subscribe’ rating for medium to long-term investment,” said Akriti Mehrotra, Research Analyst, Stoxbox.

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.