Manba Finance IPO Set to Open: Key Details for Investors

The Initial Public Offering (IPO) of Manba Finance Limited, a renowned Non-Banking Financial Company (NBFC), is set to commence on September 23, 2024. Broadly anticipated within the Indian primary market, the IPO will remain open for investments until September 25, 2024. Aiming to secure approximately ₹150.84 crore, the issuance involves a release of fresh shares with a price band set between ₹114 and ₹120 per equity share.

In the lead-up to this offering, shares of Manba Finance have generated interest in the grey market. According to market observers, these shares have been trading at a premium of ₹60, reflecting positive anticipation among investors.

Interested bidders can apply in lots, with each lot comprising 125 shares. The allotment of shares is set to occur on September 26, 2024, under the supervision of Link Intime India Private Limited, the official registrar for this public issue. Manba Finance’s shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) by September 30, 2024. Hem Securities Limited is appointed as the lead manager for the IPO.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, provided insights into the financial health of the firm. “With an Asset Under Management (AUM) of ₹936 crore as of March 31, 2024, Manba Finance focuses heavily on vehicle loans, particularly two-wheelers, constituting 60% of its loan portfolio and yielding 90% of its revenue. Although such focus has generated high returns, this trend may not be sustainable long-term,” Jain commented, highlighting the difficulties arising from the company’s underwriting capabilities and recent rapid growth primarily driven by asset recovery.

Market analysts have pointed out potential risks surrounding the IPO. Despite a credit rating of BBB+ and an assessed high post-money book value of 1.7 times by market experts, they suggest risks may overshadow anticipated gains. To ensure informed decision-making, potential investors are advised to seek opinions from certified experts before committing to investments.

The IPO represents a significant development for Manba Finance, with its increased visibility in the financial market as it seeks to expand its operational footprint within the NBFC sector.