Manba Finance initial public offer (IPO) was subscribed within an hour of opening for public subscription on Monday in the primary market. The non-banking finance company (NBFC) initial share sale opened for subscription today and will conclude on September 25.
The maiden share sale of Manba Finance garnered 23.79 times subscription on the first day of bidding on September 23, as per NSE data at 5 PM. The Rs 150.84-crore initial share sale got bids for 20.92 crore shares, as against 87.99 lakh shares on offer.
The non-institutional investors part fetched 43.18 times subscription, while the quota for qualified institutional buyers (QIBs) got subscribed 2.36 times. Retail individual investors (RIIs) part received 27.71 times subscription.
The company has a fixed price band of Rs 114 to Rs 120 per share.
Manba Finance IPO GMP today price
According to multiple platforms that track the grey market premium activities, the Manba Finance shares are commanding a GMP in the price range of Rs 64 in the unlisted market, indicating a premium of over 53 percent.
The shares of the mainboard issue will be listed on 30th September.
Manba Finance's IPO consists entirely of a fresh issue of up to 1.26 crore shares. Currently, the promoters hold a full 100 percent stake in the Maharashtra-based company. The proceeds from the IPO will be used to strengthen the capital base, enabling the company to meet its future lending needs and for general corporate purposes.
The company has allocated 50 percent of the issue for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 125 equity shares, with further bids to be made in multiples of 125 shares.
Manba Finance offers financial services including auto loans, loans for used cars, small business loans, and personal loans. It currently operates in 66 locations across six states – Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
The company’s Assets Under Management (AUM) grew to Rs 936.85 crore in FY24 from Rs 495.82 crore in FY22, reflecting a compound annual growth rate (CAGR) of 37.5 per cent. Manba Finance’s profit saw a significant rise of 89.5 per cent, reaching Rs 31.41 crore in FY24, up from Rs 16.58 crore in the previous year. Revenue also increased by 44 per cent, climbing to Rs 191.58 crore in FY24 from Rs 133.32 crore in FY23.
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