Manba Finance IPO: A New Investment Opportunity
The initial public offering (IPO) of Manba Finance has officially opened for subscription today and will remain accessible until September 25. This marks a significant milestone for the company, which has successfully raised Rs 45 crore from anchor investors ahead of the issue’s opening. The IPO is entirely a fresh issue of up to 1.25 crore shares, with no offer-for-sale component, aiming to raise approximately Rs 151 crore.
Manba Finance IPO Price Band
The company has set a price band of Rs 114-120 per share, allowing investors to bid for a minimum of 125 shares in one lot. This pricing strategy is designed to attract a wide range of investors, from retail to institutional, looking to capitalize on the growth potential of the company.
Manba Finance IPO GMP
In the unlisted market, shares of Manba Finance are currently trading with a grey market premium (GMP) of Rs 60, indicating a substantial premium of 50% over the upper end of the issue price. This positive sentiment in the grey market suggests strong investor interest and confidence in the company’s future performance.
Manba Finance IPO Review
Financial analysts have weighed in on the IPO, advising investors with a high-risk tolerance to consider applying. They note that while the valuations appear to be fully priced in, the company has demonstrated robust growth in revenue, margins, and other key financial metrics. Swastika Investmart has highlighted that investors should carefully assess the potential risks and market volatility before making a decision.
Company Overview
Based in Mumbai, Manba Finance specializes in providing financial solutions to both salaried and self-employed individuals. The company is known for its quick turnaround time (TAT) for loan sanction and disbursement, which has become a significant selling point in the competitive financial services market.
In FY24, Manba Finance reported a remarkable 92% share of two-wheeler loans within its assets under management (AUM). The company ranks third in AUM per branch at Rs 14.41 crore, trailing behind established players such as Arman Financial and Baid Finserv. Notably, Manba Finance has achieved the fastest branch growth in the sector, boasting a compound annual growth rate (CAGR) of 40.3% from FY 2022 to FY 2024.
Financial Performance
The financial performance of Manba Finance has been impressive. The company’s AUM surged from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024, reflecting a robust CAGR of 37.46%. In terms of profitability, Manba Finance posted a profit of Rs 31.41 crore in FY24, marking an 89% increase from Rs 16.58 crore in the previous fiscal year. Revenue also saw a significant boost, growing from Rs 133.32 crore in FY23 to Rs 191.58 crore in FY24, a rise of 44%, primarily driven by increased interest income.
Listing and Management
Upon completion of the IPO, Manba Finance will list its equity shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Hem Securities serves as the sole book-running lead manager for the IPO, while Link Intime India is the registrar for the issue.
Conclusion
The Manba Finance IPO presents an intriguing opportunity for investors looking to tap into the growing financial services sector in India. With strong financial metrics, a solid growth trajectory, and a favorable market sentiment reflected in its GMP, the IPO is poised to attract significant interest. However, potential investors should conduct thorough research and consider their risk tolerance before participating in this offering.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of the Economic Times.)