Manba Finance IPO Review: Investment Opportunity or Risk?

Manba Finance IPO

Business Model of Manba Finance IPO

Manba Finance Limited primarily operates in the auto sector. It offers financing solutions mainly for two-wheelers and three-wheelers. While the company also provides small business loans and personal loans, the revenue contribution from these is minimal. The company’s primary target market includes employees and self-employed individuals.

Company Network and Reach:


As of March 2024, Manba Finance has 1,344 employees and maintains strong relationships with 190 electric vehicle (EV) dealers and 1,100 other dealers. The company has a presence in Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.

Financial Performance

Financial data indicates solid growth for the company. In March 2022, the profit was around ₹10 crore, which increased to ₹31 crore by March 2024. Revenue also saw a jump, growing from ₹106 crore to ₹192 crore over the same period, signaling robust growth for the company.

Manba Finance operates under the NBFC (Non-Banking Financial Company) model, where it borrows funds at a certain interest rate and lends them at a higher rate. The company’s net interest margin plays a crucial role in determining its profitability.

Manba Finance IPO Finance Information:

Period Ended 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets ₹973.75 Crore ₹787.25 Crore ₹561.46 Crore
Revenue ₹191.63 Crore ₹133.32 Crore ₹106.62 Crore
Profit After Tax (PAT) ₹31.42 Crore ₹16.58 Crore ₹9.74 Crore
Net Worth ₹200.61 Crore ₹168.43 Crore ₹151.74 Crore
Reserves and Surplus ₹162.46 Crore ₹155.54 Crore ₹138.96 Crore
Total Borrowing ₹752.27 Crore ₹595.93 Crore ₹394.40 Crore
All amounts are in ₹ Crore.

Manba Finance IPO Details

This IPO is a fresh issue, meaning the raised funds will be used for the company’s growth and expansion. The IPO size is ₹150 crore, with an expected market cap of approximately ₹600 crore. Notably, there is no offer for sale (OFS), so the full proceeds will benefit the company.

  • Cut-off price: ₹120 per share
  • Face value: ₹10 per share
  • IPO open dates: 23rd to 25th September
  • Expected listing date: 30th September
  • Grey Market Premium (GMP): Manba Finance IPO GMP today is ranging from ₹50 to ₹60, indicating good demand in the market.

Manba Finance IPO details :

IPO Date September 23, 2024 to September 25, 2024
Listing Date [To be announced]
Face Value ₹10 per share
Price Band ₹114 to ₹120 per share
Lot Size 125 Shares
Total Issue Size 12,570,000 shares (aggregating up to ₹150.84 Cr)
Fresh Issue 12,570,000 shares (aggregating up to ₹150.84 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Shareholding Pre-Issue 37,669,410 shares
Shareholding Post-Issue 50,239,410 shares

Manba Finance IPO Timeline

IPO Open Date Monday, September 23, 2024
IPO Close Date Wednesday, September 25, 2024
Basis of Allotment Thursday, September 26, 2024
Initiation of Refunds Thursday, September 26, 2024
Credit of Shares to Demat Friday, September 27, 2024
Listing Date Monday, September 30, 2024
Cut-off Time for UPI Mandate Confirmation 5 PM on September 25, 2024

Manba Finance IPO lot size information :

Application Lots Shares Amount
Retail (Min) 1 125 ₹15,000
Retail (Max) 13 1,625 ₹195,000
S-HNI (Min) 14 1,750 ₹210,000
S-HNI (Max) 66 8,250 ₹990,000
B-HNI (Min) 67 8,375 ₹1,005,000

Why Investors Should Take Notice

The Manba Finance IPO GMP has been showing positive signs in the grey market, which makes it an attractive option for investors. Hem Securities is the lead manager for the IPO, a well-experienced firm in managing IPOs. The company’s financial performance is solid, with a Return on Net Worth (RoNW) of 21.36%, indicating a strong business foundation.

Key Points to Consider

  1. High demand in the grey market (Manba Finance IPO GMP today: ₹50-60).
  2. Strong financial performance with significant profit growth.
  3. Company’s NBFC business model with a growing dealer network.
  4. Potential difficulty in allotment due to the small size of the IPO.

Conclusion

Manba Finance Limited IPO offers strong growth potential, making it a compelling investment opportunity. The company’s robust financials, paired with positive market demand as seen in its Manba Finance IPO GMP, position it as a promising candidate for investors. However, keep in mind the risks and the challenges in the allotment process due to its smaller size.

Disclaimer : The aim of every content at Wall Street Trends is solely for information & educational purposes. financial awareness & literacy in our Bharat!

Thus, We aim to promote We are not SEBI Registered & don’t offer PMS/Advisory, nor any kind of Account Handling Service.

Stock Market Investments are subject to Market Risks.

Leave a Comment

Your email address will not be published. Required fields are marked *

Top Stock Market Movers: Today’s Gainers and Losers. Deepak Builders IPO: Key Details & Investment Insights Top 5 Expert Stock Picks for Today: Buy Now for Big Gains! Unlock Diwali Profits: Top Stock Picks You Can’t Miss! Waaree Energies IPO: All You Need to Know The Smartest and Easiest Way to Invest in Gold Upcoming 6 IPOs With Shareholder Quota Benefits in 2024-2025 5X Growth Potential: The Best Sector to Invest In Top 5 Mutual Funds for High Returns Hyundai IPO: A Game-Changer in India’s Market!