Manba Finance IPO Overview
The much-anticipated IPO of Manba Finance, a non-banking finance company (NBFC) based in Maharashtra, is set to open its subscription on September 23. This marks the second IPO of the week, with the company aiming to raise approximately ₹150.84 crore through this public offering. Investors interested in participating in this IPO will have the opportunity to do so until September 25. The price band for the shares has been established between ₹114 and ₹120 per share. Once launched, the equity shares will be listed on both BSE and NSE, providing investors with a reputable platform to trade their shares.
Key Details of the Manba Finance IPO
This IPO will issue 1.25 crore fresh equity shares, and notably, there will be no shares sold through the Offer for Sale (OFS) route. This implies that all proceeds generated from the IPO will be directed towards the company’s growth and operational needs. Additionally, the IPO will have an initial one-day opening on September 20 specifically for anchor investors, ahead of the broader public offering.
Use of Funds
Manba Finance intends to utilize the funds raised from the IPO to bolster its capital base, ensuring it can effectively meet its future capital requirements and support ongoing business expansion. The company is currently under the guidance of Hem Securities, which is serving as the sole merchant banker for this public issue.
Investment Allocation
| Investor Type | Allocation Percentage |
|---|---|
| Qualified Institutional Buyers (QIBs) | 50% |
| Retail Investors | 35% |
| Non-Institutional Investors | 15% |
Investors looking to participate must bid for a minimum of 125 equity shares, with further bids accepted in multiples of 125 shares thereafter.
Business Model of Manba Finance
Manba Finance operates as an NBFC with an impressive Asset Under Management (AUM) exceeding ₹900 crore. The company’s offerings include financial solutions for two-wheelers, three-wheelers, used cars, small business loans, and personal loans. It is noteworthy that Manba Finance is wholly owned by the Manish Shah family, ensuring a focused and dedicated leadership approach.
Financial Performance
Over the past fiscal year, Manba Finance has demonstrated robust financial performance. The company’s net profit surged by 89.5% to reach ₹31.4 crore by the end of March 2024, compared to the previous year. Concurrently, net interest income hit ₹87.6 crore, marking a 26% increase. However, it is essential to note that the net interest margin experienced a decline from 12.31% to 11.16%. Additionally, the company’s asset quality showed minor deterioration, with gross Non-Performing Assets (NPA) rising by 21 basis points to 3.95% in FY24 from FY23, while net NPA edged up by 2 basis points to 3.16%.
Conclusion
As the IPO of Manba Finance is set to open, potential investors should consider the company’s growth prospects, strong business model, and recent financial performance. The opportunity to invest at a price band of ₹114-120 per share presents an appealing option for both retail and institutional investors. With strategic use of funds aimed at expanding its capital base, Manba Finance is well-positioned for future growth in the burgeoning Indian financial sector.
