Manba Finance IPO Opens for Subscription: Here's What You Need to Know

Manba Finance IPO Details

The initial public offer (IPO) of Manba Finance has opened for subscription today and will close on September 25. The company raised Rs 45 crore from anchor investors ahead of the issue opening.

IPO Price Band and Details

The IPO is a fresh issue of up to 1.25 crore shares with no offer-for-sale component. The company has fixed a price band of Rs 114-120 per share, where investors can bid for 125 shares in one lot. Through the issue, Manba Finance plans to raise around Rs 151 crore.

Market Trends and GMP

In the unlisted market, the company's shares are trading with a Grey Market Premium (GMP) of Rs 60, which indicates a premium of 50% over the issue price. This suggests a strong demand for the stock in the market.

About Manba Finance

Based in Mumbai, Manba Finance provides financial solutions to both salaried and self-employed individuals, offering a quick turnaround time (TAT) for loan sanction and disbursement. The company is a key player in the lending industry, with a focus on two-wheeler loans, which accounted for 92% of its assets under management (AUM) in FY24.

Financial Performance

Manba Finance has demonstrated robust growth in revenue, margins, and other positive financial metrics. Its AUM increased from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024, reflecting a compound annual growth rate (CAGR) of 37.46%. The company posted a profit of Rs 31.41 crore in FY24, an 89% increase from Rs 16.58 crore in the previous year.

IPO Review and Recommendation

Analysts advise investors with high-risk tolerance to consider applying for the IPO, as the valuations are fully priced in. Swastika Investmart recommends that investors consider applying for the issue after careful consideration of the potential risks and market volatility.

Listing Details

Manba Finance will list its equity shares on the BSE and NSE. Hem Securities is the sole book-running lead manager, and Link Intime India is the registrar for the issue.