Strong Listing: Manba Finance Shares Make Stellar Debut, List At 25% Premium From IPO Price On Exchanges

Manba Finance Limited made an entrance into the stock market with its shares listing at a significant premium from its Initial Public Offering (IPO) price. The financial company's shares made their debut on Monday, September 30, 2024.

Manba Finance's shares opened at Rs 145 on the National Stock Exchange (NSE), marking a premium of 20.83% over the IPO price of Rs 120 per share. On the Bombay Stock Exchange (BSE), the shares debuted at Rs 150, a 25% jump over the issue price.

The Rs 150.84 crore Manba Finance IPO was available for subscription from September 23 to September 25, 2024, with the shares priced between Rs 114 and Rs 120. The IPO generated a tremendous response from all investor categories, closing with an overall subscription of 224.05 times. This demand translated into bids for 197.14 crore shares, far exceeding the 87.99 lakh shares available for allocation.

The retail Investors category saw a massive response, with the retail segment being subscribed 143.95 times. The NII segment witnessed extraordinary demand, getting subscribed 511.62 times, and the Qualified Institutional Buyers (QIBs), including mutual funds, banks, and insurance companies, also showed considerable interest, with the QIB category being subscribed 148.55 times.

The Manba Finance IPO was entirely a fresh issue of 1.26 crore shares, with no offer-for-sale component. This means that the funds raised through the IPO will directly benefit the company, aiding in its future expansion plans. The minimum application size for retail investors was 125 shares, translating into a minimum investment of Rs 15,000. Investors could bid for shares in multiples of 125.

Manba Finance allocated 20% of the issue for QIBs, 15% for NIIs, and 35% for retail investors. The allotment date for shares was September 26, and Hem Securities Limited acted as the book-running lead manager for the IPO, with Link Intime India Private Ltd serving as the registrar.

The company plans to utilize the net proceeds from the IPO to augment its capital base and support its future growth requirements. By boosting its financial foundation, Manba Finance aims to enhance its lending capabilities and expand its product offerings.

Founded in 1998, Manba Finance Limited is a well-established non-banking finance company (NBFC-BL) that specializes in providing financial solutions for various vehicle categories, including new two-wheelers, three-wheelers, electric vehicles (EV2Ws and EV3Ws), used cars, as well as small business loans and personal loans. The company caters to a diverse clientele, including salaried and self-employed individuals, offering tailored financing solutions that cover up to 85% of the vehicle's on-road price.

Operating across urban, semi-urban, and metropolitan regions, Manba Finance has developed a robust network of over 1,100 dealers, including more than 190 electric vehicle dealers. It maintains a strong presence in states such as Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.

For the fiscal year ending March 31, 2024, the company recorded a 44% increase in revenue. Manba Finance's profit after tax surged by 90% compared to the previous year.

The successful listing of Manba Finance and the overwhelming response to its IPO indicate strong investor confidence in the company's growth trajectory. The funds raised through the IPO will enable Manba Finance to strengthen its capital base, expand its operations, and cater to a larger customer base, particularly in the growing electric vehicle financing segment.