Manba Finance IPO Subscription Status, GMP, and Listing Date for 2024
The Manba Finance IPO closed on Wednesday, September 25, 2024, after receiving an extraordinary response from investors. The public issue was subscribed 224.05 times in total, indicating high demand. The subscription figures were particularly strong in the non-institutional investors (NII) category, which saw a massive 511.62 times oversubscription. The retail investors’ category also performed exceptionally well, being oversubscribed 143.95 times. The qualified institutional buyers (QIB) category was subscribed 148.55 times.
The finalization of the allotment for the Manba Finance IPO is expected to be completed by Thursday, September 26, 2024. Investors who participated in this IPO will have their shares credited to their demat accounts by Friday, September 27, 2024. The shares are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date scheduled for Monday, September 30, 2024.
Subscription Details
The IPO has seen an overwhelming response from investors. It was oversubscribed by 224.05 times overall. Here’s the breakdown of subscriptions by category:
- Qualified Institutional Buyers (QIB): 148.55 times
- Non-Institutional Investors (NII): 511.62 times
- Retail Individual Investors (RII): 143.95 times
This high level of interest indicates strong market confidence in Manba Finance’s growth potential.
Grey Market Premium (GMP)
As of now, the grey market premium for the Manba Finance IPO is reported to be around ₹20 to ₹25 per share. This suggests that the shares are expected to list at a premium on the stock exchanges, reflecting positive investor sentiment.
Manba Finance IPO Subscription Breakdown
- Qualified Institutional Buyers (QIB): 148.55 times
- Non-Institutional Investors (NII): 511.62 times
- bNII (> ₹10 lakh): 546.56 times
- sNII (< ₹10 lakh): 441.73 times
- Retail Investors: 143.95 times
- Total Subscription: 224.05 times
With a price band set between ₹114 and ₹120 per share, Manba Finance raised a total of ₹150.84 crore through this IPO. The issue comprised 1.26 crore fresh shares, making it a fully fresh issue, which means all proceeds will be used to strengthen the company’s capital base. Hem Securities Limited acted as the book-running lead manager, and Link Intime India Private Ltd was the registrar for the issue.
Key Details of Manba Finance IPO:
- Issue Size: 12,570,000 shares (aggregating up to ₹150.84 crore)
- Price Band: ₹114 to ₹120 per share
- Lot Size: Minimum of 125 shares, with an investment starting at ₹15,000
- Issue Type: Book Built Issue
- Listing: BSE, NSE
The IPO was reserved across various categories, with a total offering of 1,25,70,000 shares. This included 20% for QIBs, 15% for NIIs, 35% for retail investors, and 30% for anchor investors. Manba Finance raised ₹45.25 crore from anchor investors on September 20, 2024, prior to the public issue opening.
Company Background and Financial Performance
Manba Finance Limited, established in 1998, is a non-banking financial company (NBFC-BL) primarily engaged in offering financial solutions for two-wheelers (2Ws), three-wheelers (3Ws), electric vehicles (EV2Ws and EV3Ws), used cars, small business loans, and personal loans. The company serves a broad customer base, including both salaried individuals and the self-employed, tailoring its offerings to each group.
As of March 31, 2024, Manba Finance reported significant growth in its financials, with a revenue increase of 44% and a 90% rise in profit after tax (PAT) compared to the previous year. The company recorded a PAT of ₹31.42 crore in FY24, up from ₹16.58 crore in FY23. Its assets also grew, reaching ₹973.75 crore in FY24.
Financial Highlights (Restated)
- Assets (₹ Crore):
- FY24: ₹973.75 crore
- FY23: ₹787.25 crore
- FY22: ₹561.46 crore
- Revenue (₹ Crore):
- FY24: ₹191.63 crore
- FY23: ₹133.32 crore
- FY22: ₹106.62 crore
- Profit After Tax (₹ Crore):
- FY24: ₹31.42 crore
- FY23: ₹16.58 crore
- FY22: ₹9.74 crore
Key Performance Indicators
Manba Finance’s market capitalization, post-IPO, stands at ₹602.87 crore. The company’s key performance indicators as of March 31, 2024, include:
- Return on Equity (ROE): 21.36%
- Debt/Equity Ratio: 3.75
- Return on Net Worth (RoNW): 15.66%
- Price-to-Book Value (P/BV): 2.25
Objects of the IPO
The primary objective of the IPO is to augment Manba Finance’s capital base to meet its future capital requirements. The company plans to leverage the raised capital to expand its operations and further strengthen its position in the NBFC sector, especially in financing vehicles and personal loans.
Following the IPO, the company’s post-issue shareholding will stand at 74.98%, down from 100% pre-issue. This reflects the dilution of shares that will now be available to public investors.
Manba Finance IPO Timeline (Tentative)
- Basis of Allotment: Thursday, September 26, 2024
- Initiation of Refunds: Thursday, September 26, 2024
- Credit of Shares to Demat: Friday, September 27, 2024
- Listing Date: Monday, September 30, 2024
How to Apply for Manba Finance IPO
Investors can apply for the Manba Finance IPO online using either UPI or ASBA as the payment method. UPI IPO application is offered by brokers who don’t offer banking services, while ASBA IPO application is available in the net banking of your bank account.
To apply through Zerodha, investors can follow these steps:
- Visit the Zerodha website and login to Console.
- Go to Portfolio and click the IPOs link.
- Go to the ‘Manba Finance IPO’ row and click the ‘Bid’ button.
- Enter your UPI ID, Quantity, and Price.
- ‘Submit’ IPO application form.
- Visit the UPI App (net banking or BHIM) to approve the mandate.
In conclusion, the overwhelming response to the Manba Finance IPO underscores the market’s confidence in the company’s growth potential and its position as a leading player in the two-wheeler and three-wheeler financing sector. As investors eagerly await the listing, it remains to be seen how the stock will perform in the secondary market.
