Manba Finance Limited, a NBFC-BL providing financial solutions for Auto loans, Used Cars, Small Business Loans and Personal Loans with an AUM size of more than ₹ 800 crore as on December 31, 2023, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO, with a face value of Rs 10 per equity share, is entirely a fresh issue of up to 12.57 million shares with no offer of sale component.
The issue is being made through the book-building process, wherein not more than 50% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the issue shall be available for allocation to non-institutional bidders, and not less than 35% of the issue shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance will be utilized to augmenting the capital base to meet the Company’s future capital requirements towards onward lending and general corporate purposes.
Manba Finance commenced its business operations as an NBFC in 1998 in Mumbai, Maharashtra. From 2009 onwards, it expanded its activities to include vehicle financing and currently operates across 65 locations in five states: Maharashtra, Gujarat, Rajasthan, Chhattisgarh, and Madhya Pradesh. The company primarily serves salaried and self-employed individuals.
The majority of Manba Finance’s loan portfolio, approximately 99%, consists of new vehicle loans, with an average ticket size of around ₹0.80 lakhs. It specializes in providing financial solutions with quick turnaround times for loan approval and disbursement. The company has developed enduring relationships with over 850 dealers, including more than 60 EV dealers, across its operational states.
