The Manba Finance IPO, worth ₹150.84 crore, opened for subscription on September 23, 2024, and is set to close on September 25, 2024.
As of Day 3, the IPO has garnered significant interest, particularly from retail investors. Manba Finance is a non-banking financial company (NBFC) with a focus on loans for two-wheelers, three-wheelers, used cars, and small businesses.
In this article, we’ll take a deep dive into the subscription status, GMP, and overall review of Manba Finance’s IPO to help you decide whether to apply.
Key Details of Manba Finance IPO
| Price Band | ₹114 to ₹120 per share |
| IPO Size | ₹150.84 crore |
| Subscription Period | September 23, 2024, to September 25, 2024 |
| Lot Size | Minimum 125 shares (₹15,000 investment for one lot) |
| Allotment Date | September 26, 2024 |
| Listing Date | September 30, 2024 |
Subscription Status on Day 3
As of September 24, 2024, Manba Finance IPO has been oversubscribed by a whopping 79.13 times. Here’s a detailed breakdown of the subscription status:
- Retail Investors: 74.97 times
- Non-Institutional Investors (NIIs): 188.78 times
- Qualified Institutional Buyers (QIBs): 4.17 times
This high level of interest suggests strong demand, especially from retail and non-institutional investors.
MUST READ: Manba Finance IPO 2024: Everything You Need to Know Before Investing
Grey Market Premium (GMP) and Expected Listing Gains
Manba Finance shares are trading at a GMP of ₹65 as of Day 3. This indicates a potential listing price of around ₹185 per share, which represents a 54% premium over the upper price band of ₹120. While GMP is speculative and not a definitive indicator of listing price, it does provide insights into the market sentiment.
Manba Finance: Company Overview
Manba Finance Ltd, founded in 1996, is a Mumbai-based NBFC focusing on lending solutions in the following sectors:
- Two-Wheeler and Three-Wheeler Loans
- Electric Vehicle (EV) Loans
- Used Car Loans
- Small Business Loans
With an AUM (Assets Under Management) of ₹937 crore as of March 31, 2024, the company has built a strong foothold in the financing industry, especially for new and used vehicle loans.
Financial Performance
Manba Finance has demonstrated consistent financial growth:
- Revenue Growth: Increased AUM and customer base, with an AUM size of ₹937 crore in FY24.
- Profitability: Manba Finance has shown stable profits over the years, with efficient loan recovery and risk management practices contributing to its financial stability.
Use of IPO Proceeds
The net proceeds from the IPO will be used to:
- Augment Capital Base: Strengthen the company’s capital base to support future business expansion and lending operations.
- General Corporate Purposes: Cover routine expenses and administrative costs as the company scales its operations.
Should You Apply?
With an oversubscription of over 79 times and a GMP of ₹65, Manba Finance’s IPO is attracting significant attention. Here’s why you should consider applying:
- Strong Demand: The high level of subscription, especially from retail and NIIs, indicates strong confidence in the company’s growth prospects.
- Focused Market Segment: Manba Finance’s focus on the vehicle and small business loan segments provides stability in its lending operations.
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Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research before making any investment decisions. The author and publisher do not hold any responsibility for financial losses or gains incurred from using this information. Past performance does not guarantee future results.
