The IPO (Initial Public Offering) of Mumbai-based non-banking financial company (NBFC) Manba Finance is set to open for public subscription on September 23 and will close on September 25. The company is looking to raise ₹151 crore through this IPO. Ahead of the opening, the grey market premium (GMP) for Manba Finance’s shares was around ₹55-60, indicating a 46% premium over the issue price.
The price range for the IPO has been set between ₹114 and ₹120 per share.
This IPO is entirely a fresh issue of 1,25,70,000 shares, with no existing shareholders selling their shares. The ₹151 crore figure is based on the upper price limit of ₹120.
Manba Finance plans to use the funds raised to boost its capital base and meet future financial needs.
The shares will be allocated through a book-building process. Up to 50% of the shares will be reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and 35% for retail investors.
Manba Finance, based in Mumbai, offers financial services to both salaried and self-employed individuals, known for its quick loan approval and disbursement process. In FY24, the company had 92% of its assets under management (AUM) tied to two-wheeler loans, making it one of the leading players in this market. It ranks third in AUM per branch, following companies like Arman Financial and Hero Fincorp. Manba Finance also had the fastest branch expansion, growing at a compound annual growth rate (CAGR) of 40.3% between FY22 and FY24.
The company’s AUM grew from ₹495.82 crore in FY22 to ₹936.85 crore in FY24, representing a CAGR of 37.46%. It reported a profit of ₹31.41 crore in FY24, an increase of 89.5% compared to ₹16.58 crore in FY23. Its revenue also saw a significant jump, growing by 43.71% to ₹191.58 crore in FY24, largely due to higher interest income.
Manba Finance will list its shares on the BSE and NSE. Hem Securities is managing the IPO, and Link Intime India is handling the share allocation process.
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