Manba Finance shares are set to debut on the stock exchanges today, and investors are anticipating strong returns based on grey market trends. The company’s shares were trading with a grey market premium (GMP) of Rs 38 ahead of the listing. With an issue price of Rs 120, this suggests that the stock might list at a 32% premium.
However, it’s important to remember that GMP is only an indicator of grey market activity and can change quickly.
Manba Finance, based in Mumbai, plans to use the funds raised to strengthen its capital base and prepare for future financial needs. The company specializes in providing fast financial solutions for both salaried and self-employed individuals, with a quick loan approval process.
In the financial year 2024 (FY24), Manba Finance focused heavily on two-wheeler loans, which made up 92% of its total assets under management (AUM). The company also showed impressive growth, with its AUM rising from Rs 495.82 crore in FY22 to Rs 936.85 crore in FY24—a compound annual growth rate (CAGR) of 37.46%.
Manba Finance posted a profit of Rs 31.41 crore in FY24, an 89% jump from Rs 16.58 crore in the previous year. Revenue also surged 44%, from Rs 133.32 crore in FY23 to Rs 191.58 crore in FY24, mainly due to higher interest income.
The company is well-regarded for its fast-growing branch network, with a 40.3% compound growth from FY22 to FY24. Hem Securities was the sole lead manager for the issue, while Link Intime India handled the registrar duties.
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