Manba Finance files draft papers with SEBI for IPO

Manba Finance IPO papers filed with Sebi

Maharashtra-based non-banking finance company (NBFC) Manba Finance has filed papers with the capital markets regulator to raise funds through an initial public offering (IPO).

The offer will purely be a fresh issue of 1,25,70,000 shares with no offer-for-sale component.

Manba is 100 percent owned by the promoter and promoter group. Manish Kiritkumar Shah, his wife, Nikita Manish Shah, and Manba Investments & Securities are the largest shareholders with 17.41 percent, 13.29 percent and 36.92 percent stake, respectively.

The NBFC, which offers new vehicle, used cars, small business and personal loans, will use the proceeds to augment its capital base to meet its future capital requirements towards onward lending.

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Manba has consistently maintained a minimum capital to risk-weighted assets ratio (CRAR). It was 27.02 percent in financial year 2022-23 and 26.62 percent for the six months period ended September FY24.

The financial solutions provider recorded a 70.2 percent on-year growth in net profit at Rs 16.58 crore in FY23, with the net interest income rising 46.1 percent to Rs 69.5 crore during the same period. Net interest margin expanded to 12.31 percent in FY23, from 9.28 percent in FY22.

Assets under management (AUM) at Rs 633.7 crore in FY23 grew by 27.80 percent over the previous year but was down 6.47 percent to 495.8 crore compared from FY21.

Net profit for six months period ended September FY24 stood at Rs 16.8 crore, with net interest income at Rs 38.65 crore and total income at Rs 88.3 crore, while the AUM was Rs 733.7 crore.

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Manba Finance competes with listed peers like Baid Finserv, MAS Financial Services, and Arman Financial Services.

Hem Securities is the book running manager to the issue.