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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 |
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
- High demand in the grey market (Manba Finance IPO GMP today: ₹50-60).
- Strong financial performance with significant profit growth.
- Company’s NBFC business model with a growing dealer network.
- 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.
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