The Manba Finance IPO received an overwhelming response from investors, recording a massive 224.10 times subscription. The non-banking finance company closed the subscription for its Rs 151-crore initial public offering on September 25.
The launched its maiden public issue to raise Rs 150.84 crore solely via fresh issue, thus the entire IPO funds (excluding issue expenses) will be received by the company. The price band for the issue was Rs 114-120 per share.
Investors bought 197.18 crore equity shares during September 23-25, against the offer size of 87.99 lakh equity shares, the subscription data on the exchanges showed.
Non-institutional investors were in the leading position, buying 511.65 times the allotted quota, while qualified institutional buyers and retail investors bid 148.55 times and 144.03 times the portions set aside for them, respectively.
Also read: KRN Heat Exchanger and Refrigeration IPO gets strong interest, subscribed over 24 times on day 1
The Maharashtra-based company that offers loans for two-and-three-wheeler segments will utilise IPO funds for augmenting the capital base to meet its future capital requirements.
Manba Finance will finalise the basis of allotment of IPO shares by September 26, and the equity shares will be credited to the demat accounts of eligible investors by September 27.
Its equity shares will be available for trading on the bourses effective September 30.
The participants in the grey market traded Manba's IPO shares at a 45-50 percent premium over the upper price band, the market observers said. The grey market is an unofficial market for trading in IPO shares till the listing.
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