Manba Finance IPO is set to raise ₹150.84 crores through a book-built issue, consisting entirely of fresh equity with 1.26 crore shares available for investors. The IPO will be open for subscription from September 23, 2024, to September 25, 2024.
The allotment is expected to be finalized on September 26, 2024, with the shares likely listed on the BSE and NSE on September 30, 2024. The price band for the IPO is set at ₹114 to ₹120 per share. Retail investors can apply for a minimum lot size of 125 shares, requiring an investment of at least ₹15,000.
For small non-institutional investors (sNII), the minimum investment is ₹2,10,000 for 14 lots (1,750 shares), while big non-institutional investors (bNII) need to invest at least ₹10,05,000 for 67 lots (8,375 shares). This IPO offers a promising opportunity for investors looking to enter the financial services sector, with crucial dates and investment details for those considering participation.
Manba Finance IPO Details
| IPO Open Date: | September 23, 2024 |
| IPO Close Date: | September 25, 2024 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹114 to ₹120 Per Share |
| Issue Size: | Approx ₹150.84 Crores |
| Fresh Issue: | Approx ₹150.84 Crores |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Manba Finance IPO Timeline (Tentative Schedule)
Manba Finance IPO opens on September 23, 2024, and closes on September 25, 2024.
| IPO Open Date | Monday, September 23, 2024 |
| IPO Close Date | Wednesday, September 25, 2024 |
| 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 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 25, 2024 |
About Manba Finance Company
Manba Finance Limited is a Maharashtra-based Non-Banking Financial Company-Base Layer (NBFC-BL) offering various financial solutions.
They specialize in providing loans for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans.
As of March 31, 2024, the company has an Assets Under Management (AUM) of over ₹900 crores. Known for their quick turnaround time (TAT) in loan sanction and disbursement, Manba Finance operates in 66 locations through 29 branches across six states in western, central, and northern India.
With a strong dealer network of over 1,100, including more than 190 EV dealers, the company has expanded its portfolio to cater to salaried and self-employed individuals through tailored loan offerings.
Strengths of Manba Finance Company
Manba Finance operates in 66 locations, connected through 29 branches across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. They have partnerships with over 1,100 dealers, including more than 190 electric vehicle (EV) dealers, expanding their reach in the growing EV sector.
The company sources its funding from various channels, including term loans and cash credit facilities from public and private sector banks, small finance banks, and other financial institutions. Additionally, they issue privately placed listed and unlisted non-convertible debentures (NCDs) and engage in PTC transactions to meet their capital requirements.
Manba Finance has developed efficient systems and processes for sales, risk management, and collections, either managed in-house or through service providers. This approach improves service quality, ensuring quicker loan approvals, sanctions, and disbursements.
The company has shown steady growth in revenue and profit over the years. Their revenue from operations increased from ₹106.59 crore in FY22 to ₹191.59 crore in FY24, while profit after tax (PAT) grew from ₹9.74 crore in FY22 to ₹31.42 crore in FY24.
Risks of Manba Finance Company
Manba Finance’s business heavily relies on its dealers, who contribute a large portion of the company’s new vehicle loan business. Dealer-sourced disbursements reached ₹564.08 crore in FY24, compared to ₹381.79 crore in FY23 and ₹242.82 crore in FY22. The company’s financial health could suffer if it fails to maintain strong relationships with these dealers.
New vehicle loans make up 97.90% of Manba Finance’s assets under management (AUM), indicating a lack of diversification in its loan products. This concentration in a single segment may limit the company’s business growth and impact its overall financial stability.
The company’s ability to secure cost-effective funding is critical to its operations. Any disruption in its funding sources could severely impact its business and financial performance.
Manba Finance, along with its promoters and directors, is involved in ongoing legal proceedings. Any unfavorable rulings could harm the company’s business prospects and future growth.
Manba Finance IPO Lot Size
Investors can bid for a minimum of 125 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 125 | ₹15,000 |
| Retail (Max) | 13 | 1625 | ₹195,000 |
| S-HNI (Min) | 14 | 1,750 | ₹210,000 |
| S-HNI (Max) | 66 | 8,250 | ₹990,000 |
| B-HNI (Min) | 67 | 8,375 | ₹1,005,000 |