Manba Finance shares list at 25% premium over IPO price

Manba Finance raised Rs 45.25 crore from eight institutional investors via its anchor book.

Shares of Manba Finance Limited were off to a positive start on its stock market debut on September 30 after listing at Rs 150, commanding a premium of 25 percent over the issue price of Rs 120 on the BSE.

The listing gains are slightly lower than the grey market estimates where shares were trading at a premium of about 28 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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The Rs 151-crore IPO, comprising a fresh issue of 1.26 crore shares, saw a strong response with a 224.10 times oversubscription. Investors bid for 197.18 crore shares during September 23-25, compared to the offer size of 87.99 lakh shares, according to exchange data.

Non-institutional investors led the charge, subscribing 511.65 times their allocated portion, while qualified institutional buyers and retail investors bid 148.55 times and 144.03 times their respective quotas.

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Founded in 1998, it provides financial solutions for new two-wheelers, three-wheelers, electric two- and three-wheelers, used cars, small business loans, and personal loans. The company primarily serves employees and self-employed individuals, offering customized financing programs. It typically finances up to 85 percent of a vehicle's on-road price, with customers contributing the remainder.

On September 20, Manba Finance raised Rs 45.25 crore from eight institutional investors via its anchor book. Chartered Finance & Leasing was the largest investor in the anchor book, acquiring 8.33 lakh shares worth Rs 10 crore. The other seven investors, including Finavenue Capital Trust and Antara India Evergreen Fund, purchased 4.2 lakh shares each.

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The company plans to use the net proceeds to strengthen its capital base for future growth.

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