Manba Finance Limited IPO: Key Details and Financial Overview

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Manba Finance Limited IPO: Key Details and Financial Overview

Manba Finance Limited, a leading non-banking finance company (NBFC-BL), is set to launch its Initial Public Offering (IPO) with a fresh issue of shares amounting to ₹150.84 crore.

September 21st, 2024 IPO

Manba Finance Limited, a leading non-banking finance company (NBFC-BL), is set to launch its Initial Public Offering (IPO) with a fresh issue of shares amounting to ₹150.84 crore. The IPO offers an opportunity for investors to participate in the company’s future growth, with the subscription window opening from September 23, 2024, to September 25, 2024.

IPO Details:

IPO Size: ₹150.84 crore (entirely a fresh issue of 12.57 million shares)
Price Band: ₹114 to ₹120 per share
Minimum Lot Size: 125 shares
Minimum Investment (Retail): ₹15,000

Timeline:

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 (Tentative): Monday, September 30, 2024

Investor Categories & Lot Size:

Investor Type	Minimum Lots	Shares	Investment
Retail Investors	1 lot	125 shares	₹15,000
Small NII (sNII)	14 lots	1,750 shares	₹210,000
Big NII (bNII)	67 lots	8,375 shares	₹1,005,000

Promoter Holding:

Pre-Issue Holding: 100%
Post-Issue Holding: To be updated post allotment.

Company Overview:

Established in 1998, Manba Finance Limited offers diverse financial solutions, primarily focused on financing new and electric two-wheelers (2Ws and EV2Ws), three-wheelers (3Ws and EV3Ws), used cars, and small business loans. The company also provides personal loans tailored to both employees and self-employed individuals.

Manba Finance works with over 1,100 dealers, including 190 EV dealers, across six states: Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. With a strong presence in urban, semi-urban, and rural markets, the company is focused on expanding its reach and meeting the financial needs of its target customers.

As of March 31, 2024, the company employed 1,344 staff members and continued its focus on growth and expanding its operations.

Key Financials (Restated):

Financial Metrics	FY 2024	FY 2023	FY 2022
Assets	₹973.75 Cr	₹787.25 Cr	₹561.46 Cr
Revenue	₹191.63 Cr	₹133.32 Cr	₹106.62 Cr
Profit After Tax	₹31.42 Cr	₹16.58 Cr	₹9.74 Cr
Net Worth	₹200.61 Cr	₹168.43 Cr	₹151.74 Cr
Total Borrowing	₹752.27 Cr	₹595.93 Cr	₹394.4 Cr

Manba Finance has demonstrated consistent growth in revenue and profitability over the past three fiscal years, with a 44% increase in revenue and a 90% rise in profit after tax in FY24 compared to FY23.

Key Performance Indicators (KPI):

ROE: 21.36%
Debt-to-Equity Ratio: 3.75
Return on Net Worth (RoNW): 15.66%
Price to Book Value (P/BV): 2.25

Objects of the Issue:

Manba Finance intends to utilize the net proceeds from the IPO to strengthen its capital base, enabling the company to meet its future capital requirements.

The company’s expansion strategy and focus on electric vehicles and rural market penetration make it a promising candidate for investors seeking exposure in the finance sector. With a strong financial performance and growth outlook, the Manba Finance IPO is expected to attract a broad range of investors.