Manba Finance IPO opens tomorrow: GMP, price, review, other details of upcoming IPO in 10 points

Manba Finance IPO: The initial public offering (IPO) of Manba Finance Limited will hit the Indian primary market on 23rd September 2024, i.e. tomorrow. The upcoming IPO will remain open for bidders until 25th September 2024, i.e. Wednesday next week. The Non-Banking Financial Company (NBFC) has fixed the Manba Finance IPO price band at ₹114 to ₹120 per equity share. The book build issue aims to raise 150.84 crore by issuing fresh shares.

Meanwhile, shares of the NBFC have become available for trade in the grey market ahead of the issue opening. According to stock market observers, Manba Finance shares are available at a premium of ₹60 in the grey market today.

Important Manba Finance IPO details

1] Manba Finance IPO GMP today: According to market observers, the NBFC's shares are available at a premium of ₹60 in the grey market today.

2] Manba Finance IPO price: The NBFC has fixed the Manba Finance IPO price band at ₹114 to ₹120 per equity share.

3] Manba Finance IPO date: The book build issue will open on September 23rd, 2024, and will remain open until September 25th, 2024.

4] Manba Finance IPO size: The book build issue is complete fresh shares, which aims to raise ₹150.84 crore.

5] Manba Finance IPO lot size: Bidders can apply in lots, and one lot of the public issue will comprise 125 company shares.

6] Manba Finance IPO allotment date: The most likely Manba Finance IPO allotment date is 26th September 2024.

7] Manba Finance IPO registrar: Link Intime India Private Limited has been appointed official registrar of the public issue.

8] Manba Finance IPO listing date: The book build issue is proposed for listing on BSE and NSE, and the most likely date for share listing is 30th September 2024.

9] Manba Finance IPO lead manager: Hem Securities Limited has been appointed lead manager of the public offer.

10] Manba Finance IPO review: Highlighting the financials of the financial company, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "With an AUM of ₹936 crore as of March 31, 2024, the company has a heavy focus on vehicle loans, particularly two-wheelers, which make up 60% of its portfolio and 90% of its revenue. While this niche generates an impressive average yield of 21% annually, such high returns appear unsustainable in the long term. A glaring weakness in the company's underwriting capabilities adds to concerns."

The company's recent 48% AUM growth in FY24, spurred by a one-time gain from asset recovery, masks underlying financial weaknesses. With a credit rating of BBB+ and an expensive valuation at 1.7x post-money book value, the risks far outweigh any potential gains.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.