Manba Finance to launch Rs.150 crore IPO on September 23

Manba Finance, a Maharashtra-based non-banking financial company (NBFC) is soon to launch its Rs 150-crore initial public offering IPO on September 23, 2024. The IPO price range has been fixed at a share price interval between Rs.114 and Rs.120, with the subscription period closing on the 25th of September 2024.

Interestingly, this is a fresh issue of 1.25 crore equity shares, meaning that there is no offer-for-sale by any of the existing shareholders and hence, the entire money will be coming into the company. Institutional investors will be able to access the anchor book from September 20.

What Manba Finance Plans to Do with the Funds

Manba Finance intends to use the proceeds of the IPO to grow the company and shore up its capital. The Group has an Asset Under Management AUM of more than Rs.900 crore and provides financial services for two and three-wheelers, used cars, small businesses, and personal loans. Manba Finance, under complete ownership of the Manish Shah family, is looking to strengthen its presence in the lending business.

Who Gets What?

The issue has been divided into three segments for purposes of the IPO: quota for qualified institutional buyers (QIBs) per se at 50%, distributed to retail investors at 35%, and other noninstitutional investors at 15%. In particular, a minimum of 125 shares may be bid for and any other share thereafter is in multiples of 125.

Financials

There is continuity in the business expansion of Manba Finance. The company’s net profits rose 89.5% to Rs.31.4 crore for FY24, while its net interest income grew 26% to Rs.87.6 bn. Notwithstanding this, the net interest margin fell from 12.31% to 11.16% in the same period. However, a round of higher levels of gross non-performing assets (NPA) at 3.95%, and net NPA at 3.16% was also observed.

Conclusion: It’ll be interesting to see how Manba IPO plays out, especially as it taps into a fast-growing NBFC space with good financials. With the company focused on strengthening its business, this offering could attract significant attention in the Indian financial market.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.