Manba Finance IPO Achieves 23.8 Times Subscription on Opening Day

The initial public offering (IPO) of Manba Finance was met with an overwhelming response on its opening day, as it was subscribed 23.8 times by the close of trading on September 23, 2024. The non-banking finance company (NBFC)’s shares rapidly garnered interest shortly after the IPO launched, indicating strong demand in the primary market.

According to data from the National Stock Exchange (NSE), the Rs 150.84 crore IPO received bids for 20.92 crore shares against the 87.99 lakh shares available. The subscription breakdown revealed that non-institutional investors led the charge, subscribing 43.18 times their allocation. Notably, the portion set aside for qualified institutional buyers (QIBs) was subscribed 2.36 times, while retail individual investors (RIIs) showed significant interest, subscribing 27.71 times.

The company has set the price band for its shares between Rs 114 and Rs 120. In the grey market, Manba Finance shares commanded a premium of Rs 64, reflecting an anticipated listing premium of over 53 percent. The shares are slated for listing on the stock exchange on September 30.

Manba Finance’s IPO consists entirely of fresh shares, with the company’s promoters currently holding a complete stake. The proceeds from the IPO are intended to bolster the company’s capital base, aiding in future lending requirements and general corporate purposes. The issue has been structured to allocate 50 percent of the shares to QIBs, 35 percent to retail investors, and 15 percent to non-institutional investors.

Investors were required to bid for a minimum of 125 equity shares, with additional bids being made in multiples of 125 shares. Manba Finance operates in 66 locations across six Indian states: Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. The company provides an array of financial services including auto, used car, small business, and personal loans.

In financial terms, Manba Finance’s assets under management (AUM) rose significantly to Rs 936.85 crore in the fiscal year 2024 from Rs 495.82 crore in 2022, demonstrating a compound annual growth rate (CAGR) of 37.5 percent. Furthermore, the company reported a notable increase in profit by 89.5 percent, achieving Rs 31.41 crore in FY24, compared to Rs 16.58 crore the previous year. Revenue also saw a robust growth of 44 percent, reaching Rs 191.58 crore from Rs 133.32 crore.

As the company’s shares prepare to enter the secondary market, investors are advised to consult with certified financial advisors before making any investment decisions, as recommended by industry experts.