Manba Finance IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

Up to 1,25,70,000 equity shares aggregating up to ₹ [●] lakhs

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

About Manba Finance Limited

Manba Finance Limited is a Non-Banking Financial Company (NBFC) specialising in financing solutions for various needs such as new 2-wheelers, 3-wheelers, electric vehicles (2-wheelers and 3-wheelers), used cars, small business loans, and personal loans. With an Asset Under Management (AUM) exceeding ₹80,000 lakh as of December 31, 2023, they primarily focus on new vehicle loans, which constitute about 99% of its loan portfolio, with an average ticket size of ~₹0.80 lakh.

Headquartered in Mumbai, Maharashtra, Manba Finance operates across 65 locations connected to 28 branches in 5 states in western, central, and north India. They have built strong relationships with over 850 dealers, including more than 60 electric vehicle dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, and Madhya Pradesh.

According to the CRISIL report, they lead in two-wheeler loans, boasting a 96% share of AUM, and maintain the highest AUM per branch in fiscal 2023.

With a centralised credit team and robust risk management framework, Manba Finance ensures quick loan processing and efficient collections. The goal is to provide financial solutions tailored to the needs of both salaried and self-employed individuals, promoting financial discipline and reducing defaults. Through diversified funding sources and strong credit ratings, Manba Finance continues to meet capital requirements and maintain a stable financial position for sustainable growth.

Industry Outlook:

Domestic two-wheeler sales are projected to grow steadily at a rate of 10-12% annually from fiscal 2023 to fiscal 2026, fueled by a robust recovery in fiscal 2023. This growth trajectory is anticipated to be driven by increasing scooter penetration in rural areas, with scooters expected to capture a larger market share outside of urban centres, reaching up to 65-75%.
The industry outlook also indicates a shift in consumer preference towards higher 'cc' scooters, particularly in the 125cc category, which is expected to further stimulate demand. Two-wheeler disbursements are forecasted to increase at a faster pace of 13-15% annually from fiscal 2023 to 2026. This growth will be supported by the recovery in scooter sales, improving urban sentiments, rising adoption of electric two-wheelers, and enhancements in rural infrastructure.

Manba Finance Limited IPO Details

Manba Finance Limited IPO Dates

The exact dates are yet to be announced.

Manba Finance Limited IPO Price Band

The exact price range is yet to be announced.

Manba Finance Limited IPO Lot Size

The exact lot size is not announced yet.

Manba Finance Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

The primary objective of the IPO is to augment the capital base to meet future capital requirements for onward lending. This will support the growth of business and assets, ensuring continuous financial solutions such as new vehicle loans, used cars loans, small business loans, and personal loans to customers.
A portion of the net proceeds from the IPO will be allocated towards general corporate purposes, not exceeding 25% of the gross issue proceeds. These funds will provide flexibility for various business needs, including strengthening marketing capabilities, meeting ongoing operational expenses, upgrading technology, and addressing general corporate contingencies, subject to board approval and compliance with relevant regulations.

Peer Details

The following are the listed peers of Manba Finance Limited:

Baid Finserv Limited
Arman Financial Services Limited
MAS Financial Services Limited

How to Check the Allotment Status of the Manba Finance Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Manba Finance Limited IPO

Registered office: 324, Runwal Heights Commercial Complex, L.B.S Marg, Opp. Nirmal Lifestyle, Mulund (West), Mumbai 400 080, Maharashtra, India
Phone: +91 22 6234 6598
E-mail:investorrelation@manbafinance.com

IPO Financials

Particulars	As at September 30, 2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operation (in ₹ million)	8,828.86	13,331.64	10,659.06	10,565.63
Profit After Tax (PAT) (in ₹ million)	1,680.36	1,658.01	974.02	936.33
Cash and Cash Equivalents (in ₹ million)	4,180.22	6,237.99	3,198.39	453.93
Return on Net Worth (%)	9.07	9.84	6.42	6.60
Total Borrowings (in ₹ million)	65,122.56	59,593.01	39,439.73	40,467.55
Return on Equity (%)	9.07%	9.84%	6.42%	6.60%
Return on Capital Employed (RoCE) (%)	11.51%	13.53%	8.34%	9.06%
EBITDA (in ₹ million)	5,954.92	8,385.19	6,304.11	6,747.35

Know before investing

Strengths

Manba Finance Limited benefits from well-established relationships with over 850 dealers, including more than 60 EV dealers, across multiple states in India. These strong ties enable immediate access to information on customer funding requirements, facilitating quick responses and ensuring efficient loan processing.
With a strategic approach to market expansion, Manba Finance Limited has successfully penetrated unexplored geographies by carefully studying market dynamics and leveraging dealer networks. This expansion into new territories has contributed to the company's growth trajectory and widened its customer base.
The rural market presents significant growth opportunities for Manba Finance Limited, with rural income being a key determinant of two-wheeler demand. With only 8% of overall banking credit directed towards rural areas despite contributing 47% to GDP, there is ample scope for the company to tap into this underserved market and meet the financing needs of rural customers.
Manba Finance Limited secures funding from a diverse range of sources, including public sector banks, private sector banks, small finance banks, and other financial institutions. This access to varied funding options allows the company to borrow funds cost-effectively and ensures sufficient capital availability for lending activities, supporting its growth objectives.

Risks

Manba Finance Limited relies significantly on its relationships with dealers for generating leads and referrals, particularly for new vehicle loans. However, these arrangements are non-exclusive, and dealers may also collaborate with competitors in the future. Any strain in these relationships due to service issues or dissatisfaction could adversely affect the company's ability to expand its customer base, potentially impacting its business, financial condition, and operations.
The company's plan to offer new loan products, such as used car loans, small business loans, and personal loans, relies heavily on leveraging its existing branch network. However, transitioning from a focus on vehicle financing to offering a broader range of financial products may require adjustments in systems, processes, and employee skill sets. Failure to effectively implement these changes or address emerging challenges could hinder the successful expansion of new product offerings, impacting business growth.
Despite experiencing significant growth in recent years, Manba Finance Limited faces challenges in sustaining this growth and managing it effectively. The company's business operations depend heavily on timely access to cost-effective funding from various sources, including public sector banks, private sector banks, and financial institutions. Any disruption in these funding sources or an inability to raise funds on acceptable terms could adversely affect liquidity, profitability, and overall financial condition.