Manba Finance IPO: The initial public offering (IPO) of Manba Finance Ltd opened on September 23 and has been receiving strong demand. The bidding period for the ₹150.84-crore worth Manba Finance IPO ends today as the last day of the subscription period is September 25.
Manba Finance is a non-banking finance company (NBFC) with a focus on new two wheeler (2W), three wheeler (3W), electric two wheeler (EV2Ws), electric three wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans with an AUM size of ₹937 crore as on March 31, 2024
Manba Finance IPO has already been heavily oversubscribed and most analysts have recommended subscribing to the issue. The trends in Manba Finance IPO GMP, or grey market premium, also signal a strong demand for the shares.
Let us take a look at Manba Finance IPO GMP today, subscription status, review and other key details on the last day of the subscription period.
Manba Finance IPO had been subscribed 79.13 times in total so far on September 24, the third and the last day of the bidding process. The public issue received bids for 69.62 crore equity shares as compared with 87.99 lakh shares on the offer, according to NSE data available till 10:05 am.
The retail portion of the public issue has been subscribed 74.97 times, while the Non Institutional Investors (NII) segment is booked 188.78 times. The Qualified Institutional Buyers (QIB) segment has received 4.17 times subscription so far.
Manba Finance shares are commanding a decent premium in the unlisted market. Manba Finance IPO GMP today is ₹65 per share, according to stock market observers. This indicates that in the grey market, Manba Finance shares are trading higher by ₹65, or at a premium of 54%, to their issue price of ₹120 per share.
Being a NBFC focused on the two-wheeler segment, Manba has managed to deliver strong performance despite a weak rural recovery post-COVID. Most analysts have recommended subscribing to Manba Finance IPO on the back of the company’s consistent growth, industry prospects and fair valuation.
“Manba witnessed its GNPA peak out in FY22 at 4.9% which is much lower compared to other vehicle financiers. Further on the back of a low base and expansion in new geographies, Manba has been able to grow its AUM at 37% CAGR over FY22-24 and has generated ROA/ROE of 2.3%/10.1% which is in line with other listed vehicle financiers, while its valuation appears attractive at FY24 P/B of 1.7x (post issue). Thus we recommend subscribing to the issue,” said Nirmal Bang.
BP Equities also said that the current issue is priced at a P/BV of 2.3x based on FY24 book value, indicating a fair valuation.
“With its strategic focus on customer satisfaction and innovative products, Manba Finance is well-equipped to meet evolving market needs. We recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective,” BP Equities said.
Manba Finance IPO opened for public subscription on Monday, September 23, and closes today, September 25. The IPO allotment is expected to be finalized on September 26, and the IPO listing date is September 30. The equity shares of Manba Finance will be listed on BSE and NSE.
The company aims to raise ₹150.84 crore from the book-built issue which is entirely a fresh issue of 1.26 crore shares.
Manba Finance IPO price band is ₹114 to ₹120 per share and the IPO lot size is 125 shares. The minimum investment amount required by retail investors is ₹15,000.
The net issue proceeds are proposed to be utilised towards augmenting the capital base to meet the company’s future capital requirements.
Hem Securities is the book running lead manager of the Manba Finance IPO, while Link Intime India Private Ltd is the IPO registrar.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
