Manba Finance IPO: NBFC mobilises ₹45 crore from anchor investors ahead of subscription

Manba Finance IPO: Manba Finance Limited has raised ₹45.25 crore from anchor investors ahead of its IPO subscription opening for bidding. The non-banking financial company (NBFC)'s initial public offering (IPO) is all set to hit the D-Street for its three-day subscription on Monday, September 23, 2024 which will remain open for investors till Wednesday, September 25, 2024.

Manba Finance Ltd allocated a total of 37,71,000 equity shares at Rs. 120 per share on Friday, September 20, 2024, to the anchor investors. The institutions that participated in the anchor round were Chartered Finance & Leasing Limited, Finavenue Capital Trustfinavenue Growth Fund, Anrara India Evergreen Fund, Belgrave Investment Fund, Meru Investment Fund PCC-Cell 1, Nav Capital VCC - Nav Capital Emerging Star Fund, Rajasthan Global Securities Private Limited, and Vikasa India EIF I Fund - Incube Global Opportunities.

Also Read: Manba Finance IPO: 10 key points to know before you subscribe to ₹151 crore issue

Manba Finance IPO Details:

The Manba Finance IPO, worth ₹150.84 crore, comprises a fresh issue of 12,570,000 equity shares. There is no offer-for-sale (OFS) component. The Manba Finance Limited IPO price band has been fixed at ₹114 to ₹120 per equity share with a face value of ₹10.

The company plans to use the net income proceeds to increase its capital base and fulfil its future capital needs. Hem Securities Limited is the book-running lead manager for the Manba Finance IPO, and Link Intime India Private Ltd is the registrar for the issue.

At the lower end of the price band is 13.67 times as compared to the average industry peer group P/E Ratio of 13.45 times. The Manba Finance IPO lot size is 125 equity shares and in multiples of 125 equity shares thereafter.

Also Read: Manba Finance IPO: Price band set at ₹114-120 per share; check key dates, issue details, more

Manba Finance IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.

Tentatively, Manba Finance IPO basis of allotment of shares will be finalised on Thursday, September 26, and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Friday, September 27. Manba Finance share price is likely to be listed on BSE and NSE on Monday, September 30.

Also Read: Manba Finance files draft papers with SEBI for an IPO

Manba Finance Company Details:

Headquartered in Mumbai, Maharashtra, the NBFC operates through 66 locations connected to 29 branches across six states in western, central, and northern India. Approximately 97.90 per cent of its loan portfolio is dedicated to new vehicle loans, with an average ticket size (ATS) of ₹80,000 for two-wheelers and ₹1,40,000 for three-wheelers.

Manba Finance, as stated in the company's red herring prospectus (RHP), is a Non-Banking Financial Company-Base Layer (NBFC-BL) that offers financial solutions for new two-wheeler (2Ws,) three-wheeler (3Ws), electric two-wheeler (EV2Ws), electric three wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans. Their AUM size is over ₹90,000 lakhs as of March 31, 2024.

Also Read: Manba Finance IPO: Check date, price band, GMP and other key details

The company operates in urban, semi-urban, and metropolitan areas, providing services to rural areas nearby. It has developed partnerships with over 1,100 dealers, over 190 of which specialise in EVs and are located in Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.

The company's listed peers are Baid Finserv Ltd (with a P/E of 13.65), Arman Financial Services Ltd (with a P/E of 8.57), MAS Financial Services Ltd (with a P/E of 2.55). The company has built a strong network of over 1,100 dealers, including more than 190 EV dealers, across six key states: Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.