Manba Finance had a successful stock market debut on Monday, September 30, listing at ₹145 on the NSE, which is a 20.83% increase from its IPO price of ₹120. On the BSE, the shares opened even higher at ₹150, reflecting a 25% gain from the issue price.
The IPO, worth ₹150.84 crore, was available for subscription from September 23 to September 25 and was priced between ₹114 and ₹120 per share.
The demand for Manba Finance’s shares was overwhelming, with the IPO being subscribed 224.05 times. Investors placed bids for 197.14 crore shares, significantly surpassing the 87.99 lakh shares available. The retail segment saw a subscription of 143.95 times, while the Non-Institutional Investors (NII) category was subscribed 511.62 times, and Qualified Institutional Buyers (QIBs) subscribed 148.55 times.
IPO Details: The Manba Finance IPO consisted entirely of a fresh issue of 1.26 crore shares, with no offer for sale. Retail investors needed to apply for a minimum of 125 shares, which required an investment of ₹15,000. The allotment date for the shares was September 26.
“Manba Finance’s IPO saw fantastic demand, with a subscription rate over 224 times, indicating a strong debut. With improving profit margins and plans for expansion, investors who received shares are encouraged to hold onto them for the medium to long term,” said Akriti Mehrotra, a research analyst at Stoxbox.
The company allocated 20% of the IPO to QIBs, 15% to NIIs, and 35% for retail investors. The funds raised will be used to strengthen the company’s capital base for future growth. Hem Securities Limited was the lead manager for the IPO, while Link Intime India Private Ltd acted as the registrar.
About Manba Finance:
Founded in 1998, Manba Finance Limited is a non-banking finance company (NBFC) that provides financial solutions for new and used vehicles, including two-wheelers, three-wheelers, and electric vehicles. The company also offers small business and personal loans, supporting both employees and self-employed individuals. Manba Finance operates in urban and semi-urban areas and has a strong network of over 1,100 dealers, including more than 190 electric vehicle dealers across various Indian states.
In the fiscal year ending March 31, 2024, the company reported a 44% increase in revenue and a 90% rise in profit after tax compared to the previous year.
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