Manba Finance IPO: Flat GMP signals subdued debut expectations ahead of share listing date

Manba Finance IPO: The initial public offering (IPO) of non-banking financial company (NBFC) Manba Finance Ltd closed with strong demand from investors during the three-day subscription period. Manba Finance's IPO allotment has been finalised, and investors are now awaiting the announcement of the listing date.

The bidding period for the IPO was between September 23 and September 25, 2024. The allotment for the Manba Finance IPO was finalized on September 26. Shares of Manba Finance will debut on stock exchanges BSE, NSE on Monday, September 30, 2024. Ahead of the listing, investors are advised to remain vigilant about the grey market premium (GMP) for the Manba Finance IPO.

Also Read: Manba Finance IPO allotment status out. What GMP signals as eyes set on listing date

Manba Finance IPO GMP

Manba Finance shares are showing a muted trend in the unlisted market. According to stock market observers, the Manba Finance IPO GMP today, or grey market premium, has dropped to ₹38 per share. Analysts believe that the tepid Manba Finance IPO GMP is likely due to bullish momentum in the secondary market as the frontline indices, Sensex and Nifty 50, hit record highs.

Manba Finance IPO Listing Price

The Manba Finance IPO GMP indicates that the company's equity shares are trading higher by ₹38 in the grey market compared to their issue price. Considering the Manba Finance IPO GMP today and the issue price, the estimated Manba Finance IPO listing price is ₹158 per share, at a premium of just 31.67 per cent to the IPO price of ₹129 per share. 

This means that the Manba Finance IPO grey market premium signals a positive return upon listing but not a very bullish return for the IPO investors. The lowest GMP is Re 0, while the highest is ₹64. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Manba Finance IPO Day 3: GMP, subscription status, review, other key details. Should you apply?

Manba Finance IPO Details

The Manba Finance IPO, worth ₹150.84 crore, comprises a fresh issue of 12,570,000 equity shares. There is no offer-for-sale (OFS) component. The Manba Finance Limited IPO price band has been fixed at ₹114 to ₹120 per equity share with a face value of ₹10.

The company plans to use the net income proceeds to increase its capital base and fulfil its future capital needs. Hem Securities Limited is the book-running lead manager for the Manba Finance IPO, and Link Intime India Private Ltd is the registrar for the issue.

The lower end of the price band has a P/E ratio of 13.67 times, compared to the average industry peer group ratio of 13.45 times. The Manba Finance IPO lot size is 125 equity shares, and thereafter, it will be in multiples of 125 equity shares.

Also Read: Manba Finance IPO: NBFC mobilises ₹45 crore from anchor investors ahead of subscription

Manba Finance IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.

Manba Finance Company Details

Headquartered in Mumbai, Maharashtra, the NBFC operates through 66 locations connected to 29 branches across six western, central, and northern India states. Approximately 97.90 per cent of its loan portfolio is dedicated to new vehicle loans, with an average ticket size (ATS) of ₹80,000 for two-wheelers and ₹1,40,000 for three-wheelers.

Manba Finance, as stated in the company's red herring prospectus (RHP), is a Non-Banking Financial Company-Base Layer (NBFC-BL) that offers financial solutions for new two-wheeler (2Ws,) three-wheeler (3Ws), electric two-wheeler (EV2Ws), electric three wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans. Their AUM size is over ₹90,000 lakhs as of March 31, 2024.

Also Read: Manba Finance IPO: 10 key points to know before you subscribe to ₹151 crore issue

The company operates in urban, semi-urban, and metropolitan areas, providing services to rural areas nearby. It has developed partnerships with over 1,100 dealers, over 190 of which specialise in EVs and are located in Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.

The company's listed peers are Baid Finserv Ltd (with a P/E of 13.65), Arman Financial Services Ltd (with a P/E of 8.57), MAS Financial Services Ltd (with a P/E of 2.55). The company has built a strong network of over 1,100 dealers, including more than 190 EV dealers, across six key states: Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.