One of the premier non-banking financial corporations in the state of Maharashtra, Manba Finance, is ramping up to go on floors in its end course structure. The pricing band is established between ₹114 and ₹120 per share, which the investment adviser predicts to receive a high-demand response owing to various aspects like strong growth and a significant propellant alternative schedule.
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Manba Finance IPO details
The Manba Finance IPO is set to open on Sep 23, 2024, and close on Sep 25, 2024. The top merchant banker to the issue is Hem Securities. On September 20, 2024, this IPO raised ₹45.25 crores by subscription from eight institutional investors. The shares were allocated for the anchor-value book at ₹120 each.
Manba Finance Limited’s ₹150.84 crore IPO is set to release fresh equity shares of 1.25 crore, with a price range of ₹114-120 per equity share on Sep 25. Manba Finance is INDRA-based financing for minicators and three-wheelers, and Manba Finance Limited published the financial year 2024’s profit, which attracted investors.
Strategic Growth Plans of Manba Finance
The IPO proceeds will mainly be used to increase the firm’s capital base for future needs. The strategy is important because Manba Finance has been rapidly adding loans to its product portfolio, including those for two and three-wheelers, used cars, small businesses as well as personal ones.
With an asset under management (AUM) of over ₹9,000 crore as of March 2024; the company is aptly placed to capitalize on the high demand for financial services.
Sound Financial Performance of Manba Finance
The company has reflected a strong market position and operational efficiency in its financial results. Realizations Revenue from operations shot up to ₹191.6 crore in FY2024 from ₹133.31 crore in the preceding year, registering a growth of about 44%. Moreover, the profit after tax (PAT) surged by approximately 90%, which is a commendable remark on the management and strategic measures adopted by the company.
Investor Interest & Market Sentiment on the Situation of Manba Finance
Investor sentiment seems to be positive approximately a week before the IPO. This participation of marquee institutional investors in the anchor book is a testament to their confidence in Manba Finance as well as its continuing robust business model and growth opportunities. This is particularly relevant in these times as the addition of new customers to the formal credit systems becomes more prominent, especially in an auto space that is witnessing an evolution at record speed and also given one of the few large players focusing on scaling up its lending operations in underserved markets, which augur well to current trend lines to consumer financing.
What Investors Should Know
For those who are interested in getting involved in this IPO, below are the quick highlights:
IPO Current Date: 23 September, 2024
IPO Closing Date: 25 September 2024
Issue Price: ₹114 – ₹120 per share
Lot Size: Where the specifics of lot sizes are provided on any number of financial platforms.
Purpose of Issue: Mainly to augment capital base and for general corporate purposes.
Concluding remarks on the situation of Manba Finance IPO
The upcoming IPO from Manba Finance presents a great opportunity for investors, who wish to explore the growing non-banking finance sector in India. The company has strong financials and articulates its strategy for growth very well, which should stand in good stead when it looks to hit the capital markets. The market watches closely as the first day of subscriptions has been evoked and the IPO is taking place when demand for credit
services across different sectors are and will increase in days to come; the Sept 23rd opening bell rings soon.
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The text is written by Kashaf Muhammad
