The Rs 151-crore initial public offering of Manba Finance continued to garner significant interest from investors, recording 73.23 times subscription on September 24, the second day of bidding with investors buying 64.43 crore equity shares against the offer size of 87.99 lakh shares.
The non-banking finance company intends to raise Rs 150.84 crore entirely via fresh issue of 1.25 crore equity shares, at the upper end of price band of Rs 114-120 per share.
Non-institutional investors bought 172.26 times the allotted quota, followed by retail investors who picked 70.26 times the reserved portion. The part set aside for qualified institutional buyers was subscribed 4.15 times, subscription data on the exchanges showed.
The Mumbai-based NBFC that provides loans for two-and-three wheelers has already mobilised Rs 45.25 crore from several anchor investors including Chartered Finance & Leasing, Antara India Evergreen Fund, Belgrave Investment Fund, Finavenue Growth Fund, and Vikasa India EIF I Fund on September 20.
It is going to utilise the IPO proceeds mainly for augmenting the capital base to meet its future capital requirements.
About 97.90 percent of its loan portfolio comprises new vehicle loans with an average ticket size (ATS) of around Rs 80,000 for two-wheeler loans and ATS of around Rs 1,40,000 for three-wheeler loans. It has established relationship with more than 1,100 dealers, and operates business through 66 locations connected to 29 branches across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
The company also offers loans against used cars, small business loans, and personal loans.
Manba Finance that compares itself with listed peers like Baid Finserv, Arman Financial Services, and MAS Financial Services, traded at around 50 percent premium in the grey market, the unofficial market for trading in IPO shares till the listing, the market observers said.
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