Manba Finance IPO Subscription : Non-banking finance company (NBFC) Manba Finance has received an overwhelming response from investors for its IPO. By the end of the second day, the public issue was subscribed 73.23 times. A total of 64.43 crore shares were bid for, against the 87.99 lakh shares on offer. The price band for the IPO is set between ₹114-120 per share, with the company aiming to raise ₹150.84 crore through this IPO. Investors can subscribe to the issue until September 25.
Subscription Details (As of September 24, 2024, 5:00 PM):
- Qualified Institutional Buyers (QIB): 4.15 times
- Non-Institutional Investors (NII): 172.26 times
- Retail Investors: 70.26 times
- Total: 73.23 times
Latest GMP (Grey Market Premium) for Manba Finance IPO
The IPO is trading at a ₹55 premium in the grey market, suggesting a potential listing price of ₹175 per share. This implies that investors could gain a substantial profit of 45%. However, it is essential to note that the grey market premium is just an indicator and can change anytime.
Read More: Northern Arc Capital IPO Listing: Strong Debut on Stock Exchanges
Utilization of Funds
The Maharashtra-based company plans to use the funds to enhance its capital base to meet future capital requirements. Hem Securities is acting as the sole merchant banker for the issue. The IPO allocates 50% of the issue size to qualified institutional buyers, 35% to retail investors, and the remaining 15% to non-institutional investors. Investors can place bids for a minimum of 125 equity shares, and thereafter in multiples of 125 shares.
There will be no Offer for Sale (OFS) in this IPO, meaning all the proceeds will directly go to the company.
Business Overview of Manba Finance
Manba Finance is an NBFC with an AUM size exceeding ₹900 crore. The company provides financial solutions for two-wheelers, three-wheelers, used cars, small business loans, and personal loans. The ownership of the company is entirely with the Manish Shah family.
Financial Performance of Manba Finance
In the fiscal year ending March 2024, Manba Finance demonstrated strong financial performance, with net profit rising by 89.5% to ₹31.4 crore compared to the previous year. Net interest income grew by 26% to ₹87.6 crore, although the net interest margin decreased from 12.31% to 11.16%. The company’s asset quality slightly weakened, with gross NPAs increasing by 21 basis points to 3.95%, and net NPAs rising by 2 basis points to 3.16% compared to FY23.
