Manba Finance IPO Subscribed 11.20x on Day 1 – Key Details, Price, and Future Prospects

Manba Finance IPO: Everything You Need to Know About This Highly Subscribed Offering

Manba Finance, a Non-Banking Finance Company (NBFC) based in Maharashtra, has attracted significant attention with its Initial Public Offering (IPO) in the primary market. The IPO, which opened for subscription on September 23, 2024, was quickly subscribed 11.20x within just a few hours on the first day, signaling strong investor confidence.

The subscription window remains open until September 25, 2024, with the shares set to be listed on the stock exchange on September 30, 2024. Let’s dive into the key details, subscription status, and financial performance of Manba Finance to understand why this IPO is creating such buzz.

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Key Highlights of Manba Finance IPO

IPO Size: ₹150.84 crore
Subscription Status on Day 1: 11.20x
Price Band: ₹114 – ₹120 per share
Subscription Dates: September 23 – September 25, 2024
Listing Date: September 30, 2024
Grey Market Premium (GMP): ₹64 (indicating a 53% premium over the upper price band)
Minimum Bid Lot: 125 shares
Company’s Business: Offers auto loans, used car loans, small business loans, and personal loans.

Breakdown of Subscription (as of September 23 at 1 PM)

Retail Individual Investors (RIIs): 14.69x subscription
Non-Institutional Investors (NIIs): 16.01x subscription
Qualified Institutional Buyers (QIBs): 1.50x subscription

With 87.99 lakh shares on offer, the IPO has already received bids for 9.85 crore shares, reflecting robust demand across investor categories.

Financial Performance of Manba Finance

Manba Finance has demonstrated impressive growth in recent years:

Assets Under Management (AUM): Grew from ₹495.82 crore in FY22 to ₹936.85 crore in FY24, reflecting a 37.5% CAGR.
Profit Growth: Increased by 89.5% to ₹31.41 crore in FY24 from ₹16.58 crore in FY23.
Revenue: Jumped 44% to ₹191.58 crore in FY24, up from ₹133.32 crore in FY23.

Utilization of IPO Proceeds

The funds raised through the IPO will be used primarily to:

Strengthen the capital base of the company.
Support future lending activities to meet growing customer demand.
General corporate purposes to maintain operational efficiency.

Why Should You Consider Investing in Manba Finance?

Strong Subscription: With an overwhelming response from investors on Day 1, the high subscription rate shows confidence in the company’s growth potential.
Impressive Financials: The company’s growing AUM, profit margins, and revenue reflect a strong financial foundation.
Industry Growth: As a provider of auto and personal loans, Manba Finance is well-positioned to benefit from India’s expanding NBFC sector.
Attractive GMP: The shares are commanding a ₹64 premium in the grey market, indicating a strong debut on the stock market.
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Frequently Asked Questions (FAQs)

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

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

2. What is the IPO subscription period?

The Manba Finance IPO opened on September 23, 2024, and will close on September 25, 2024.

3. What is the Grey Market Premium (GMP) for Manba Finance shares?

As of the first day of subscription, the GMP for Manba Finance shares is ₹64, indicating a 53% premium over the upper price band.

4. What are the company’s main services?

Manba Finance offers a range of financial products, including auto loans, loans for used cars, small business loans, and personal loans.

5. How many shares can I bid for in the IPO?

Investors can bid for a minimum of 125 shares and in multiples of 125 thereafter.

6. When will the shares of Manba Finance be listed?

The shares of Manba Finance will be listed on the stock exchange on September 30, 2024.

7. What will the proceeds from the IPO be used for?

The IPO proceeds will be used to strengthen Manba Finance’s capital base, support future lending, and fund general corporate activities.

8. What is the financial performance of Manba Finance?

Manba Finance has shown steady growth, with AUM increasing from ₹495.82 crore in FY22 to ₹936.85 crore in FY24. The company’s profit rose by 89.5% during the same period, and revenue saw a 44% jump.

By analyzing the subscription status and the financial performance, it’s clear that Manba Finance’s IPO offers a promising investment opportunity. With a strong foundation and future potential, investors should keep a close watch on this exciting NBFC stock.

Conclusion: A Bright Future Ahead for Manba Finance

Given the robust demand and the company’s impressive track record of growth, the Manba Finance IPO is generating significant buzz in the financial market. If you are looking for a strong NBFC stock with growth potential, Manba Finance might just be the right addition to your investment portfolio.