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The initial public offering (IPO) of Manba Finance Ltd, which opened for bidding on September 23, 2024, has garnered strong interest from investors. The IPO, valued at ₹150.84 crore, comes to a close today, marking the final day of the subscription period.
Manba Finance Ltd is a non-banking finance company (NBFC) with a diversified portfolio that includes new and electric two-wheelers, three-wheelers, used cars, small business loans, and personal loans. As of March 31, 2024, the company had an assets under management (AUM) size of ₹937 crore. The IPO has been significantly oversubscribed and has received favorable recommendations from analysts, signaling considerable demand in the market.
According to the National Stock Exchange (NSE), the public issue was subscribed 79.13 times by the end of September 24. Bids were received for 69.62 crore equity shares against the 87.99 lakh shares on offer. The retail portion saw a subscription of 74.97 times, while the Non-Institutional Investors (NII) category was subscribed 188.78 times. Qualified Institutional Buyers (QIB) subscribed 4.17 times.
In the grey market, a premium of ₹65 per share has been reported. This suggests that the shares are trading at a premium of 54% over their issue price of ₹120 per share. The grey market premium indicates strong anticipation and demand ahead of the listing.
Manba Finance, founded in 1998, has shown resilience despite challenges such as a slow rural recovery post-COVID-19. Industry experts have praised the company’s growth prospects, strong performance, and reasonable valuation. “Manba has shown consistent growth with a commendable expansion in new geographies,” said a note from Nirmal Bang.
The company’s IPO is priced within a band of ₹114 to ₹120 per share, with a lot size set at 125 shares. Retail investors must invest a minimum of ₹15,000. Proceeds from the IPO are intended for enhancing the capital base to support future capital requirements. Hem Securities is the lead manager, and Link Intime India Pvt Ltd is the registrar.
Industry analysts, including those from BP Equities and Swastika Investmart, have recommended subscribing to the IPO, citing the company’s robust strategic focus and alignment with market needs.
The allocation of shares is scheduled for September 26, 2024, with the shares expected to be credited to demat accounts by September 27, 2024. Manba Finance’s shares are slated for listing on the BSE and NSE on September 30, 2024.
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