IPO Alert: Manba Finance Shares Could Soar 60% on Listing

Manba Finance IPO Opens Tomorrow: The Maharashtra-based NBFC is offering shares at a premium of 60% in the grey market. The company plans to raise ₹150 crore through the IPO, which will close on September 25. Allotment is expected on September 26, and listing is scheduled for September 30.

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The initial public offering (IPO) of Manba Finance, a non-banking financial company, will begin accepting subscriptions tomorrow, September 23, and will remain open for public bidding until September 25, 2024. Prior to the opening, the company’s shares are trading with a grey market premium (GMP) of 60 in the unlisted market.

At the upper price band of ₹120, the stock is trading at a strong premium of 50% above its IPO price. It’s important to remember that grey market premiums are just indicators of how the company’s shares are viewed in the unlisted market and can fluctuate quickly.

The company has set a price range of ₹114 to ₹120 per share for its initial public offering, allowing investors to bid for a minimum of 125 equity shares per lot, and in multiples thereafter. The IPO aims to raise ₹150 crore through the issuance of 1.25 crore fresh equity shares, with no offer-for-sale component. The allocation includes 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

The Maharashtra-based company plans to use the proceeds from the net fresh issue to strengthen its capital base and address future capital needs. On September 20, Manba Finance raised ₹45.25 crore from eight institutional investors through its anchor book. Chartered Finance and Leasing emerged as the largest investor, acquiring 8.33 lakh equity shares valued at ₹10 crore.

Other investors, including Finavenue Capital Trust, Antara India Evergreen Fund, Belgrave Investment Fund, Meru Investment Fund, NAV Capital VCC, Rajasthan Global Securities, and Vikas India EIF I Fund, each purchased 4.2 lakh shares. Founded in 1998, Manba Finance is a non-banking finance company (NBFC-BL) that provides financial solutions for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans.

The company’s revenue grew by 44%, and profit after tax (PAT) increased by 90% between the financial years ending March 31, 2024, and March 31, 2023. Hem Securities Ltd. serves as the book-running lead manager for the IPO, while Link Intime India Private Ltd. acts as the registrar. Allotment for the Manba Finance IPO is anticipated to be finalized on September 26, with a tentative listing date on the BSE and NSE set for September 30, 2024.