Manba Finance IPO GMP Today, Subscriptions, Key Details, Review

Manba Finance Ltd., a non-banking financial company (NBFC), has opened its IPO for subscription from September 23, 2024, to September 25, 2024. The company has set a price band between ₹ 114 and ₹ 120 per share, aiming to raise ₹150 crore. This IPO provides an opportunity for investors to engage with a growing player in the vehicle financing sector. Here’s a detailed overview of the IPO and essential information for potential investors.

Manba Finance IPO Details

Manba Finance IPO Important Dates

* - Tentative Dates

Manba Finance IPO Share Allocation

The IPO will have the following share allocation:

Manba Finance IPO Subscription Status

Manba Finance IPO GMP Live**

**The GMP prices displayed here are purely for informational purposes related to the grey market. We do not engage in grey market trading, deal with grey market rates (sub2), nor do we endorse or recommend participating in such activities.

Company Background - Manba Finance Ltd. 

Founded in 1996, Manba Finance Ltd. is a Mumbai-based non-banking financial company (NBFC) specializing in vehicle financing. Initially focusing on two-wheeler loans, the company has expanded its offerings to include financing for electric three-wheelers (EV3Ws), used cars, personal loans, and business loans. Manba Finance has built a strong presence, especially in Maharashtra, and has established itself as a key player in the retail financing space for two-wheeler loans. The company’s strategic focus is on providing accessible and affordable financing options to individuals and small businesses, particularly in semi-urban and rural areas.

Manba Finance’s consistent growth is reflected in its financial performance, with its Assets Under Management (AUM) growing significantly. The company has maintained a strong customer base, driven by its localized approach and partnerships with leading automotive dealers. This IPO is aimed at augmenting its capital base and supporting its future expansion plans.

Manba Finance Ltd. Financial Performance

~ Amount in ₹ Crore

Manba Finance Ltd. IPO Strengths

• Strong Market Presence: Established in 1996, the company has a solid foothold in vehicle financing, particularly for two-wheelers and electric three-wheelers, in semi-urban and rural markets.

• Diversified Loan Portfolio: Manba Finance offers a range of financing solutions, including loans for two-wheelers, used cars, business loans, and personal loans, ensuring a diversified revenue stream.

• Consistent Financial Growth: The company has shown strong financial growth, with significant increases in revenue, profit, and Assets Under Management (AUM) in recent years.

• Strong Partnerships: Manba Finance has built robust relationships with major vehicle dealers, enhancing its loan disbursement capabilities and expanding its reach.

• Customer-Centric Approach: The company’s focus on affordable, accessible financing for small businesses and individuals has helped it build a loyal customer base, especially in underserved regions.

• Growth Potential in EV Segment: With an increasing focus on electric three-wheeler financing, the company is well-positioned to capitalize on the growing electric vehicle market.

Manba Finance Ltd. IPO Weaknesses

• Dependence on Two-Wheeler Financing: A large portion of the company's revenue comes from two-wheeler financing, making it vulnerable to downturns in the auto sector, especially in this segment.

• High Reliance on Borrowings: The company’s business model is capital-intensive, with high dependence on external borrowings, which may affect profitability due to interest rate fluctuations.

• Asset Quality Concerns: As an NBFC, the company faces risks associated with non-performing assets (NPAs), particularly in the lower-income customer segments it serves.

• Competition from Larger NBFCs and Banks: Manba Finance faces stiff competition from larger, more established NBFCs and banks, which have more extensive resources and broader geographical reach.

Manba Finance Ltd. IPO Objectives

• Augment Capital Base: To strengthen the company’s capital base and support its growing financing operations.

• Expand Loan Portfolio: To fund the expansion of its loan portfolio, particularly in the vehicle financing and personal loan segments.

• Invest in Technology: To upgrade its technological infrastructure for improved operational efficiency and customer service.

• Enhance Regional Presence: To increase its geographical footprint beyond Maharashtra and enter new markets.

Frequently Asked Questions (FAQs)

1. What is the Manba Finance IPO date?    

The IPO opens for subscription on September 23, 2024, and closes on September 25, 2024.

2. What is the price band for the Manba Finance IPO?

The price band for the Manba Finance IPO is set between ₹ 114 and ₹ 120 per share.

3. What is the minimum lot size for the IPO?

Investors can bid for a minimum lot size of 125 equity shares.

4. What is the share allocation structure?

The allocation is 30% for Anchor Investors, 20% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).

5. How much is the company aiming to raise through this IPO?

Manba Finance is aiming to raise ₹150 crore through this IPO.

6. What will the company use the funds raised for?

The funds will be used to augment the capital base, expand the loan portfolio, invest in technology, and for general corporate purposes.

7. When will the shares be allotted and listed?

The allotment will be finalized on September 26, 2024, and the shares are expected to be list on the stock exchange on September 30, 2024.

8. Should I subscribe to the Manba Finance IPO?

Various analysts have given positive recommendations, but you should assess your financial goals and risk tolerance before investing.

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