Manba Finance to launch Rs 150-crore IPO on September 23, price band at Rs 114-120 per share

Manba Finance IPO

Non-banking financial company Manba Finance will open its Rs 150-crore initial public offering for subscription on September 23. The price band for the offer has been fixed at Rs 114-120 per share.

The IPO comprises entirely of fresh issue of 1.25 crore equity shares with no offer-for-sale component. The book-built issue will close on September 25.

The anchor book will be opened for a day on September 20.

It is a non-banking financial company-base layer, providing financial solutions for two-and-three-wheelers, used cars, small business loans and personal loans with an AUM size of more than Rs 900 crore.

The Maharashtra-based firm is going to utilise the net fresh issue funds to augment its capital base to meet future capital requirements.

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Half of the issue size has been reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent shares for non-institutional investors. Investors can bid for a minimum of 125 equity shares and in multiples of 125 shares thereafter.

The financial performance has been decent so far in the past years. Net profit for the year ended March 2024 grew by 89.5 percent to Rs 31.4 crore compared to the previous fiscal. Net interest income increased by 26 percent to Rs 87.6 crore during the same period, but net interest margin dropped to 11.16 percent from 12.31 percent.

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However, the asset quality weakened a bit, with gross NPA (non-performing assets) rising 21 bps to 3.95 percent and net NPA up by 2 bps to 3.16 percent in FY24, compared to FY23.

Manba, which is owned entirely by the Manish Shah family, will list its equity shares on the BSE and NSE. Hem Securities is acting as the sole merchant banker to the issue.

This will be the second IPO to hit Dalal Street next week.