Manba Finance IPO: Key Details, GMP, and Price Band Revealed – ₹150.84 Cr Fresh Issue to Open Soon

The IPO of Manba Finance Limited is set to open on 23rd September 2024, Monday. The Non-Banking Financial Company (NBFC) will keep the IPO open until 25th September 2024, Wednesday. The company aims to raise ₹150.84 crore through the issue of fresh shares. The price range for the IPO has been set between ₹114 and ₹120 per share.

Before the IPO opens, shares of Manba Finance are already trading in the grey market. As per stock market experts, the shares are available at a premium of ₹60.

Here are 10 important details about the Manba Finance IPO:

1. Grey Market Premium (GMP): Manba Finance shares are trading at a ₹60 premium in the grey market as of today.
2. IPO Price: The price range for the IPO is between ₹114 and ₹120 per share.
3. IPO Dates: The IPO opens on 23rd September 2024 and closes on 25th September 2024.
4. IPO Size: The company aims to raise ₹150.84 crore by issuing fresh shares.
5. Lot Size: Investors can apply for shares in lots, with one lot consisting of 125 shares.
6. Allotment Date: The expected date for share allotment is 26th September 2024.
7. IPO Registrar: Link Intime India Private Limited has been appointed as the registrar for this IPO.
8. Listing Date: The shares are expected to be listed on BSE and NSE on 30th September 2024.
9. Lead Manager: Hem Securities Limited is the lead manager of the public issue.
10. IPO Review: According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, Manba Finance’s portfolio is heavily focused on vehicle loans, especially two-wheelers, which make up 60% of its loans and generate 90% of its revenue. Although this segment yields high returns (21% annually), these returns may not be sustainable in the long term. The company’s recent 48% growth in assets under management (AUM) is attributed to a one-time asset recovery, masking deeper financial challenges. With a credit rating of BBB+ and a high valuation of 1.7x post-money book value, the risks could outweigh potential benefits.