Manba Finance IPO Debuts with 25% Premium

Shares of Manba Finance made a strong debut on Dalal Street on Monday, listing at Rs 150 on the BSE, a 25% premium over its issue price of Rs 120 per share. Similarly, the stock started trading on the NSE with a 20.83% premium at Rs 145.

However, this performance fell short of expectations. Prior to its debut, the grey market premium (GMP) for Manba Finance shares suggested a potential listing gain of up to 35%, with shares commanding a premium of Rs 38-40. During the initial bidding phase, the GMP had reached around Rs 64-65.

The Manba Finance IPO took place from September 23 to 25, with shares offered in a fixed price range of Rs 114-120 per share and a lot size of 125 shares. The IPO raised a total of Rs 150.84 crore through the fresh issuance of 1,25,70,000 equity shares.

The Manba Finance IPO was notably oversubscribed by 224.10 times overall. The non-institutional investors’ segment was oversubscribed by an impressive 511.65 times, while the quota for qualified institutional buyers (QIBs) saw a subscription of 148.55 times. Retail investors showed strong interest as well, with their portion subscribed 144.03 times over the five-day bidding period.

Founded in 1998, Manba Finance is a non-banking financial company (NBFC) that provides a range of financial services, including loans for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, as well as small business and personal loans.

Most brokerage firms expressed a positive outlook on the IPO. Hem Securities acted as the sole book-running lead manager for the offering, while Link Intime India served as the registrar.