Introduction To Manba Finance IPO
The IPO of Manba Finance is a book-built issue worth Rs 150.84 crores, consisting entirely of a fresh issue of 1.26 crore shares.
Subscription for the Manba Finance Initial Public Offer (IPO) begins on September 23, 2024, and concludes on September 25, 2024. The allotment for the IPO is anticipated to be completed by Thursday, September 26, 2024. The IPO will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date of Monday, September 30, 2024.
The price band for the Manba Finance IPO is between Rs 114 and Rs 120 per share. The minimum lot size for an application is 125 shares for retail investors. Retail investors need to invest a minimum of Rs 15,000. Small Non-Institutional Investors (sNII) must invest in 14 lots (1,750 shares), totalling Rs 2,10,000. For big Non-Institutional Investors (bNII), the minimum lot size investment is 67 lots (8,375 shares), amounting to Rs 10,05,000.
Hem Securities Limited is the book-running lead manager for the Manba Finance IPO, and Link Intime India Private Ltd is the issue’s registrar.
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Manba Finance IPO Details:
| Particulars | Details |
| IPO Date | September 23, 2024 to September 25, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 114 to Rs 120 per share |
| Manba Finance IPO Lot Size | 125 Shares |
| Total Issue Size | 1,25,70,000 shares (aggregating up to Rs 150.84 Crore) |
| Fresh Issue | 1,25,70,000 shares (aggregating up to Rs 150.84 Crore) |
| Issue Type | Book Built Issue IPO |
| Manba Finance Listing At | BSE, NSE |
| Shareholding pre-issue | 3,76,69,410 |
| Shareholding post-issue | 5,02,39,410 |
Timelines (Manba Finance Limited IPO key Dates)
| Particulars | Details |
| 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 |
Lot Size, Shares Applied, And Their Values From Different Investor Categories:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 125 | Rs 15,000 |
| Retail (Max) | 13 | 1625 | Rs 1,95,000 |
| S-HNI (Min) | 14 | 1,750 | Rs 2,10,000 |
| S-HNI (Max) | 66 | 8,250 | Rs 9,90,000 |
| B-HNI (Min) | 67 | 8,375 | Rs 10,05,000 |
Different Investor Category and Shares Offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Offer |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Manba Finance Limited IPO GMP:
The grey market premium (GMP) for Manba Finance IPO is yet to start. The latest updated details are as below.
| GMP Date | IPO Price | GMP | Estimated Listing Price |
| 25-09-2024 | 120 | ₹58 | Rs 178 |
| 24-09-2024 | 120 | ₹64 | Rs 184 |
| 23-09-2024 | 120 | ₹64 | Rs 184 |
| 22-09-2024 | 120 | ₹0 | Rs 120 |
| 21-09-2024 | 120 | ₹0 | Rs 120 |
| 20-09-2024 | 120 | ₹0 | Rs 120 |
| 19-09-2024 | 120 | ₹0 | Rs 120 |
| 18-09-2024 | 120 | ₹0 | Rs 120 |
| 17-09-2024 | 120 | ₹0 | Rs 120 |
Manba Finance Limited Company Details:
Manba Finance Ltd. has adopted a comprehensive approach to lending, utilising technology infrastructure and support functions similar to those of a retail bank. This integrated strategy has allowed the company to handle growing business volumes and enhance overall efficiencies. They assure complete transparency and maintain high integrity in all transactions, infusing a sense of security and confidence in their clients.
The company’s ethical approach has been key in nurturing enduring relationships with firms that adhere to a strong value system. At Manba Finance Ltd., they consider it an honour and a duty to assist people in their time of need.
With a rich history dating back to 1998, Manba Finance Limited is a non-banking Finance company in the Base Layer (NBFC-BL) withstood the test of time. They provide a broad array of financial solutions, including options for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans.
The company’s primary customers are salaried and self-employed people. The company tailors its offerings to these customer segments and devises personalised programs. Typically, the company Finances up to 85% of the purchase price (on-road price) of the vehicle, the customer intends to buy and prefers the customer to contribute the remaining amount.
The company has branches in urban, semi-urban, and metropolitan cities and towns, catering to the surrounding rural areas. It has established partnerships with over 1,100 dealers, including over 190 electric vehicle (EV) dealers in Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh.
Financials Of Manba Finance Ltd:
Extract from the financial statements for the past three financial years
| Particulars | As of 31-03-2024 (Rs in crores) | As of 31-03-2023 (Rs in crores) | As of 31-03-2022 (Rs in crores) |
| Assets | 973.75 | 787.25 | 561.46 |
| Revenue | 191.63 | 133.32 | 106.62 |
| Profit After Tax | 31.42 | 16.58 | 9.74 |
| Net Worth | 200.61 | 168.43 | 151.74 |
| Reserves and Surplus | 162.46 | 155.54 | 138.96 |
| Total Borrowing | 752.27 | 595.93 | 394.4 |
Manba Finance Key Ratios:
| KPI (Key performance indicator) | Values as of March 31, 2024 |
| ROE (Return on Equity) | 21.36% |
| Debt/Equity | 3.75:1 |
| RoNW (Return on net worth) | 15.66% |
| P/BV (Price to book value) | 2.25 |
The market capitalisation of the company as of date is Rs 602.87 Crores.
Manba Finance Limited IPO RHP Details:
Risks stated in the Red Herring Prospectus (RHP) of the Manba Finance IPO
1. Risks related to Dealers
The business and its operations could be adversely affected if it is not able to maintain relationships with its Dealers, from whom it derives a significant portion of its New Vehicle Loan business.
2. Risks related to credit ratings
The downgrade in the credit ratings of the company will likely increase the costs related to borrowing and exacerbate their funding environment, so it will greatly affect their business, operations, and financial condition.
The cost and availability of capital depend partly on our short-term and long-term credit ratings. Credit ratings show what ratings agencies think about our financial strength, performance, strategic position, and ability to meet obligations.
If the company’s credit ratings drop, borrowing money might cost them more. It might also lead to defaulting under some of their financing agreements and affect their ability to get cash and loans, which could hurt their business, their financial situation, and how much money they have coming in.
3. Risks related to employees
Any section of its manpower joining a union could affect it later by strikes, work stoppages, and other disputes with its employees.
In the case of significant disputes with our employees, protracted negotiations and strikes may prevent us from continuing our operations of running daily operations and, absent quick resolution, could harm their business, financial condition, results of operations, cash flows, and prospects.
4. Risks related to negative cash flows
The company has experienced negative net cash flows from operating activities in fiscal year 2024 and 2023. This is primarily due to our business model, which necessitates more cash outflows than inflows. To bridge this gap, the company has to secure additional loans, amounting to Rs 15,973.62 lakhs in Fiscal 2024 and Rs 14,064.26 lakhs in Fiscal 2023.
Given their expanding operations, which have led to more cash outflows than inflows, it is likely that the company will continue to experience negative net cash flows from operating activities.
5. Risks related to funding
The company’s business activities and its overall operations depend importantly on the availability of low-cost funding sources that it can readily access. Any material interruption in this significant process would seriously harm its business, financial condition, and results of operations.
Manba finance IPO FAQs:
What is the objective of the Manba Finance Limited IPO?
The company plans to use the money raised to increase its capital and meet its future financial needs.
What are the Manba Finance IPO open & close dates?
The opening and closing dates of the Manba Finance IPO are Monday, September 23, 2024, and Wednesday, September 25, 2024, respectively.
What is the Manba Finance IPO allotment date?
The allotment date of the Manba Finance IPO is tentatively on Thursday, September 26, 2024.
What is the Manba Finance IPO Listing Date?
The listing date of the Manba Finance IPO is tentatively on Monday, September 30, 2024.
What is the Manba Finance Limited IPO Price Band?
The price band of the Manba Finance Limited IPO ranges from Rs 114 and Rs 120 per share.
What are the Manba Finance Limited Owner details?
Manish Kiritkumar Shah is the owner or the Managing Director of the company Manba Finance Limited.
Mention the Manba Finance Limited IPO Lot Size.
The minimum lot size for the retail investors is 125 shares.
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