Manba Finance IPO Overview
Manba Finance, a prominent player in financing two-wheeler and three-wheeler vehicles, is poised for an anticipated successful debut on the stock exchanges on Monday, September 30. The company has priced its shares at Rs 120 each, and analysts predict that the stock could list at a remarkable 50% premium, potentially allowing investors to see significant returns on their investments.
Gray Market Insights
Before its official listing, Manba Finance shares have been actively traded in the gray market at a premium of around 50%. The gray market serves as an unofficial platform where shares are bought and sold prior to their public trading, offering investors some insight into possible listing prices. However, it is important to note that gray market speculations do not guarantee future market performance.
Predicted Listing Price
Amit Goyal, co-founder and chief global strategist at Pace 360, forecasts the listing price to be in the range of Rs 175 to Rs 180, indicating a potential profit margin of 45% to 50% upon listing. In contrast, Aakriti Mehrotra, a research analyst at Stoxbox, estimates a slightly more conservative listing premium of 30% to 35%.
Long-Term Growth Potential
Analysts remain optimistic about Manba Finance’s long-term growth trajectory. As a result, they encourage investors who have acquired shares to consider holding onto them for an extended period to maximize potential returns. The company has been valued at a price-to-book (P/BV) ratio of 1.70x at the upper price band, suggesting a compelling valuation with a market capitalization hovering around Rs 602 crore and a return on net worth of 15.66%.
IPO Details
The Manba Finance IPO was offered in a price band of Rs 114-120 per share, and the entirety of the IPO consisted of new shares, raising approximately Rs 150.84 crore. The funds raised will be allocated towards meeting the company’s future capital requirements and enhancing its capital base.
Investor Response
The IPO received an overwhelming response from investors, with a staggering oversubscription of 224.10 times as the offer period concluded. During the offering phase from September 23 to 25, the company made available a total of 87.99 lakh shares, receiving bids for an impressive 197.18 crore shares in return.
