Manba Finance IPO Details: Key Points to Know

Manba Finance Limited, a non-banking financial company (NBFC), is set to launch its Initial Public Offering (IPO) on September 23, 2024. This IPO will remain open for bidding until September 25, 2024, offering a price band of ₹114 to ₹120 per equity share. The company aims to raise ₹150.84 crore through the issuance of fresh shares.

Ahead of the issue, Manba Finance shares are already making waves in the grey market. According to market observers, the shares are currently trading at a premium of ₹60, signaling potential investor interest. Here’s a summary of the important details:

• IPO Price Band: ₹114 to ₹120 per share.
• IPO Open Dates: From September 23 to 25, 2024.
• Total IPO Size: ₹150.84 crore via fresh shares.
• Lot Size: Investors can bid in lots, each comprising 125 shares.
• Grey Market Premium (GMP): As of now, Manba Finance shares are commanding a premium of ₹60.
• Allotment Date: Expected on September 26, 2024.
• Listing Date: Tentatively set for September 30, 2024, on both BSE and NSE.
• Registrar: Link Intime India Private Limited has been appointed as the official registrar for the IPO.
• Lead Manager: Hem Securities Limited is serving as the lead manager.

Manba Finance, with an AUM (Assets Under Management) of ₹936 crore as of March 31, 2024, has a strong focus on vehicle loans, particularly two-wheelers. These loans make up 60% of its portfolio and generate 90% of its revenue, offering a yield of 21% annually. However, financial experts have expressed concerns over the sustainability of such high returns in the long term.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted some risks. While the company reported 48% AUM growth in FY24, driven by a one-time gain from asset recovery, underlying financial weaknesses persist. Additionally, the company’s credit rating of BBB+ and its relatively high valuation at 1.7x post-money book value pose significant concerns for potential investors.

While the Manba Finance IPO is attracting attention in the grey market, investors are advised to carefully assess the company’s financial position and risks before making their decisions.

Disclaimer: The information provided in this article is based on updates and reports gathered from various internet sources. Every effort has been made to ensure accuracy and reliability. We encourage readers to verify the details independently.