IPO Details

Bidding Dates

23 Sep '24 - 25 Sep '24

Minimum Investment

₹15,000 / 1 Lot (125 Shares)

Price Range

₹114 - ₹120

Maximum Investment

₹1,95,000 / 13 Lot (1,625 Shares)

Retail Discount

To be announced

Issue Size

₹150.84 Cr

Investor category and sub category

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

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Sep 23, 2024

Closing Date

Sep 25, 2024

Basis of Allotment

Sep 26, 2024

Initiation of Refunds

Sep 27, 2024

Listing Date

Sep 30, 2024

About Manba Finance IPO

Manba Finance Limited is launching its IPO, offering a book-built issue valued at ₹150.84 crores. The entire issue comprises a fresh offering of 1.26 crore shares. The IPO will open for subscription on September 23, 2024, and close on September 25, 2024. The allotment date is scheduled for Thursday, September 26, 2024, with a tentative listing on BSE and NSE set for Monday, September 30, 2024.

The IPO price band is between ₹114 and ₹120 per share. Retail investors can participate with a minimum application size of 125 shares, requiring an investment of ₹15,000. For small non-institutional investors (sNII), the minimum investment is 14 lots, totalling 1,750 shares and ₹210,000.

For large non-institutional investors (bNII), the minimum investment is 67 lots, totaling 8,375 shares and ₹1,005,000. This IPO offers investors an opportunity to be part of a growing financial company with a strong market presence.

Industry Outlook:

  1. Domestic two-wheeler sales are expected to grow 10-12% annually from FY23 to FY26, with scooter penetration in rural areas boosting market share to 65-75%.
  2. The 125cc scooter category is set to drive demand, contributing to a 13-15% annual increase in two-wheeler disbursements from FY23 to FY26.

Manba Finance IPO Objectives

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

  1. Augmentation of the capital base to meet future capital requirements
  2. Issue related expenses

About Manba Finance Limited

Manba Finance Limited, established in 1998, is a prominent non-banking finance company (NBFC-BL) specialising in providing financial solutions for a wide range of vehicles and loans. The company's offerings include financing for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans.

Manba Finance primarily serves two customer segments: employees and the self-employed, designing tailored programs to meet their specific needs. The company typically finances up to 85% of a vehicle's on-road price, requiring customers to cover the remaining balance.

Operating through branches in urban, semi-urban, and metropolitan areas, Manba Finance also extends its services to nearby rural regions. The company has built strong relationships with over 1,100 dealers, including more than 190 EV dealers across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. As of March 31, 2024, Manba Finance employed 1,344 individuals.

Peer Details

The companies considered by Manba Finance as its peers include:

  1. Baid Finserv Limited
  2. Arman Financial Services Limited
  3. Mas Financial Services Limited

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

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

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

How to apply for Manba Finance IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the Manba Finance IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Manba Finance 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 Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ lakh) 19,158.61 13,331.64 10,659.06
AUM (in ₹ lakh) 93,685.54 63,368.90 49,582.62
Profit After Tax (PAT) (in ₹ lakh) 3,141.97 1,658.01 974.02
Current Ratio (x) 15.78 11.25 3.99
Net Worth (in ₹ lakh) 20,060.75 16,843.13 15,174.38
Total Borrowings (in ₹ lakh) 75,227.24 59,593.01 39,439.73
Return on Net Worth (%) 15.66% 9.84% 6.42%
Gross NPA (%) 3.95% 3.74% 4.94%
Earnings Per Share (in ₹) 8.34 4.40 2.59

Know before investing

Strengths

6

  1. Established dealer network with over 1,100 dealers across six states.

  2. Rapid AUM growth, achieving ₹93,685.54 lakhs in Fiscal 2024.

  3. Strong long-term borrowing relationships with diversified funding sources.

  4. Technology-driven operations ensure quick loan processing and disbursement.

  5. Robust collections infrastructure maintaining low NPAs and asset quality.

  6. Experienced promoters with deep industry knowledge driving consistent growth.

Risks

6

  1. High dependence on dealers; 89.13% of loans are sourced through them.

  2. 97.90% of AUM is concentrated in the New Vehicle Loans segment.

  3. Credit rating downgrades could increase borrowing costs significantly.

  4. Potential asset-liability mismatches could strain liquidity and profitability.

  5. Negative cash flows from operations in Fiscals 2024 and 2023.

  6. Operations are concentrated in six states; regional disruptions could impact business.

  • How to Apply in IPO
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Manba Finance IPO FAQs

What is the Manba Finance IPO?

Manba Finance IPO is a book-built IPO. The IPO will be open from September 23, 2024, to September 25, 2024.

When will Manba Finance IPO be allotted?

The Basis of Allotment will happen on Thursday, September 26, 2024.

When will Manba Finance IPO open for subscription?

The IPO subscription window will open on September 23, 2024.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 125 shares.

When will Manba Finance Limited list on exchanges?

The listing date for Manba Finance is Monday, September 30, 2024.

What would be the listing gains on the Manba Finance IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting a Manba Finance IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Manba Finance IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Manba Finance Limited using one PAN?

You can submit only one application using your PAN card.

How to read Manba Finance Limited's financial statements?

To read Manba Finance’s financial statements, download the IPO’s  RHP document.