Manba Finance IPO: All You Need to Know About Lot Size, Bidding Dates, and More
Manba Finance Limited, a prominent Non-Banking Financial Company (NBFC), is set to launch its Initial Public Offering (IPO) in the coming days. The IPO aims to raise funds for the company’s growth and expansion plans. In this article, we’ll dive into the key details you need to know before investing in the Manba Finance IPO.
Main Points
Manba Finance IPO Dates
According to the latest updates, the Manba Finance IPO is scheduled to open for subscription on September 23, 2024 and will close on September 25, 2024. The shares are expected to be listed on the stock exchanges on September 30, 2024.
Manba Finance IPO Price Band
The price band for the Manba Finance IPO has been set at ₹114 – ₹120 per equity share. The final issue price will be determined after the bidding process is completed.
Manba Finance IPO Lot Size
The lot size for the Manba Finance IPO has been set at 125 shares, with a minimum order quantity of 1,750 shares. This means that investors will need to bid for a minimum of 1,750 shares and in multiples of 125 shares thereafter.
Manba Finance IPO Objectives
The primary objective of the Manba Finance IPO is to augment the company’s capital base to meet future capital requirements for onward lending. This will support the growth of the business and assets, ensuring continuous financial solutions such as new vehicle loans, used car loans, small business loans, and personal loans to customers.
Additionally, 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.
Manba Finance IPO Financials
As of March 31, 2024, Manba Finance had an Asset Under Management (AUM) of more than ₹900 crores. The company has a diversified borrowing mix, including term loans, cash credit facilities, and the issuance of privately placed listed and unlisted NCDs.
Manba Finance IPO Risks
While the Manba Finance IPO presents an opportunity for investors, it is essential to consider the potential risks associated with the investment:
- Dependence on dealer relationships: A significant part of the New Vehicle Loans business is derived from dealers, and any challenges in maintaining these relationships could adversely impact the company’s business and future prospects.
- Lack of product diversity: New Vehicle Loans account for 97.90% of the company’s AUM, and a lack of product diversity in loan offers might harm the company’s growth, prospects, and financial standing.
- Asset-liability mismatches: Potential asset-liability mismatches could impact liquidity and subsequently have a negative impact on operations and profitability.
- Competitive landscape: Manba Finance operates in a competitive market with ever-changing customer needs, and failing to compete effectively with established companies and new market participants could result in a negative effect on the business.
How to Apply for the Manba Finance IPO
To apply for the Manba Finance IPO, investors can follow these steps:
- Open a demat and trading account with a stockbroker if you don’t have one already.
- Ensure you have sufficient funds in your account to make the application.
- Place your bid for the desired number of shares during the IPO subscription window.
- Complete the payment process by logging in to your UPI handle and approving the payment mandate.
Remember, the allotment of shares will be done on a proportionate basis, and the refund for unallotted shares will be initiated on September 26, 2024.
