Manba Finance Announces IPO with Price Band Between ₹114-₹120 per Share: All You Need to Know

Manba Finance Limited, a non-banking financial company (NBFC), has officially announced its initial public offering (IPO) details, drawing the attention of investors keen on new market opportunities. As per the company’s announcement, the price band for its IPO has been set between ₹114 and ₹120 per share, offering an exciting proposition for those looking to invest in the financial services sector.

The IPO subscription window will open on September 23, 2024, and will close on September 25, 2024. Anchor investors will have the opportunity to participate earlier, on September 20, 2024. This strategic timeline has been designed to attract a diverse range of investors, including institutional buyers, non-institutional investors, and retail participants.

Manba Finance IPO has garnered significant interest primarily due to its diverse financial product offerings. The company specializes in providing financial solutions for two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans. As of March 31, 2024, the company had disbursed loans to over 200,000 customers, with a strong presence in rural and semi-urban areas.

The equity shares offered through the IPO have a face value of ₹10 each, but the floor price for the IPO has been set at 11.4 times the face value of the equity shares. The company has highlighted in its prospectus that at the upper end of the price band, the IPO will be valued at 14.39 times its diluted earnings per share (EPS) for FY2024. In comparison to industry peers, the company’s price-to-earnings (P/E) ratio stands at 13.67 times, slightly above the average of 13.45 times observed across the sector.

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The Manba Finance IPO also highlights the competitive nature of the financial services industry. Among its listed peers are Baid Financial Services Ltd, which has a P/E ratio of 8.57, and MAS Financial Services Ltd, which boasts a P/E ratio of 2.55. These comparisons showcase Manba Finance's valuation within the broader market context, allowing investors to gauge its potential against industry benchmarks.

Manba Finance has reserved 50% of the IPO for Qualified Institutional Buyers (QIBs), ensuring a steady inflow of institutional investment. Non-Institutional Investors (NIIs) have been allocated 15% of the offer, while 35% of the shares are reserved for retail investors. Retail participants are especially keen on this IPO, given its attractive price range and the company’s expanding market presence.

One of the significant factors driving interest in this IPO is Manba Finance’s strong dealer network. The company has over 1,100 dealer partnerships, of which 190 specialize in electric vehicles (EVs), making it a key player in the rapidly growing EV financing sector. This strategic focus on electric vehicles aligns with the government’s push towards a greener future, adding another layer of growth potential to the company’s portfolio.

In terms of IPO logistics, the lot size for the Manba Finance IPO has been set at 125 equity shares, and subsequent bids must be made in multiples of 125. The basis of allotment for shares will be finalized on September 26, 2024, with refunds for unallotted shares being processed on the same day. Successful allottees can expect their shares to be credited to their demat accounts by September 27, 2024, with the official listing on the BSE and NSE scheduled for September 30, 2024.

The total IPO is expected to raise ₹150.84 crore, and it comprises a fresh issue of 13,70,000 equity shares. The company has clarified that there will be no offer-for-sale (OFS) component in this IPO, which is a positive indicator for investors. The funds raised will be utilized to expand the company's capital base, allowing it to meet future capital requirements and drive further growth.

Manba Finance's IPO has been managed by Hem Securities Limited as the book-running lead manager, while Link Intime India Private Ltd will act as the registrar for the issue. This collaboration ensures a smooth IPO process, providing potential investors with the confidence that the issue will be efficiently managed.

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The IPO has already created a buzz in financial circles, with many analysts predicting strong demand for the issue. Manba Finance’s diverse financial offerings, strong dealer network, and focus on emerging sectors like electric vehicle financing make it an attractive investment opportunity.

As the IPO date approaches, investors are closely watching the developments surrounding Manba Finance’s listing. The company’s strategy of focusing on niche markets, combined with its strong operational presence, positions it as a player to watch in the NBFC space.