Mumbai-based non-banking financial company (NBFC) Manba Finance is set to launch its ₹151 crore initial public offering (IPO) for public subscription from September 23 to September 25. Ahead of the offering, the grey market premium (GMP) for Manba Finance is approximately ₹55-60, indicating a 46% premium over the issue price. The price band for the IPO has been established at ₹114-120 per share.
This IPO consists entirely of a fresh issue of up to 1,25,70,000 shares, with no offer-for-sale component. The total size of the issue is based on the upper price band. The company plans to utilize the proceeds to strengthen its capital base and fulfill future capital needs.
The IPO will be conducted through a book-building process, with allocations structured as follows: a maximum of 50% for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail investors.
Based in Mumbai, Manba Finance provides financial solutions to salaried and self-employed individuals, known for its quick turnaround time in loan sanctioning and disbursement. In fiscal 2024, the company dominated the two-wheeler loan segment, which made up 92% of its assets under management (AUM). It ranked third in AUM per branch, at ₹14.41 crore, behind companies like Arman Financial and Baid Finserv, and experienced the fastest branch growth, with a compound annual growth rate (CAGR) of 40.3% from FY 2022 to FY 2024.
Manba Finance’s AUM grew from ₹495.82 crore in FY 2022 to ₹936.85 crore in FY 2024, reflecting a CAGR of 37.46%. The company reported a profit of ₹31.41 crore in FY 2024, an 89.5% increase from ₹16.58 crore the previous year, and revenue surged to ₹191.58 crore from ₹133.32 crore in FY 2023, marking a 43.71% rise, largely due to increased interest income. Manba Finance’s equity shares will be listed on both the BSE and NSE, with Hem Securities serving as the sole book-running lead manager and Link Intime India as the registrar for the issue.
