Manba Finance Limited made its stock market debut today, September 30, with a strong start, listing at ₹145 on the NSE, reflecting a 20.8% increase over its issue price of ₹120 per share. On the BSE, shares opened at ₹150, marking a 25% gain. The IPO received an overwhelming response, with the issue being subscribed over 224 times, driven by significant demand from Non-Institutional Investors (NIIs).
Listing Details and Market Performance
The shares of Manba Finance were trading at a grey market premium (GMP) of ₹38-40 before listing, suggesting potential gains of up to 35%. However, on its first day of bidding, the shares were priced around ₹64-65. Despite market volatility impacting the listing prospects, Manba Finance managed to achieve strong initial gains, indicating a positive reception.
About Manba Finance and IPO Details
Established in 1998, Manba Finance is a non-banking finance company (NBFC) offering a variety of financial solutions, including loans for new and electric two-wheelers (2Ws and EV2Ws), three-wheelers (3Ws and EV3Ws), used cars, small business financing, and personal loans. The IPO issue size was ₹150.84 crore, composed entirely of a fresh issue, with the funds raised aimed at expanding the capital base to meet future financial requirements.
Company Highlights and Financial Strength
- Extensive Dealer Network: Manba Finance has strong relationships with 1,100 dealers, which serve as key points of sale for its business.
- Presence Across India: The company operates across 66 locations in 6 states, with the ability to expand into underpenetrated regions.
- Asset Quality: In FY24, the company reported a gross NPA of 3.95% and a net NPA of 3.16%.
- Funding and Operations: It has access to cost-effective long-term borrowing options, including Private Term Credit (PTC), and the issuance of privately placed listed and unlisted Non-Convertible Debentures (NCDs).
- Technology-Driven Model: Manba Finance operates with a scalable, technology-driven model designed for a quick turnaround time (TAT) in loan processing.
IPO Response and Fund Utilization
The Manba Finance IPO garnered bids worth over ₹23,000 crore against the issue size of ₹150.84 crore, showcasing robust investor interest. The funds raised from the IPO will be utilized to strengthen the company’s capital base to support future growth and capital needs.
Overall, Manba Finance’s strong debut reflects investor confidence in its business model and growth prospects, positioning it well for future expansion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
