Manba Finance, a Non-Banking Financial Company-Base Layer (NBFC-BL), has recently launched its Initial Public Offering (IPO), which opened for subscription on September 23, 2024. This IPO is a significant opportunity for investors looking to gain exposure to the rapidly growing financial solutions sector in India. With a total issue size of ₹150.84 Crores, the IPO consists entirely of a Fresh Issue of 125.7 Lakh Shares.

The subscription period for the Manba Finance IPO will remain open until September 25, 2024, and the allotment is expected to be finalized on September 26, 2024. Shares are set to be listed on both the BSE and NSE on or around September 30, 2024. The share price band has been set at ₹114 to ₹120 per equity share, with a minimum lot size of 125 shares. Retail investors must invest a minimum of ₹15,000, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹2,10,000 for 14 lots.

Hem Securities Limited serves as the book-running lead manager, while LINK INTIME INDIA PRIVATE LIMITED is the registrar for the issue. The Grey Market Premium (GMP) for the Manba Finance IPO is anticipated to be in the range of ₹45 to ₹50, indicating potential interest and demand among investors. However, it’s essential to note that trading based on GMP is not a reliable measure, as it is based on unregulated demand and supply.

As of 12:02 PM on September 23, 2024, the Manba Finance IPO live subscription status indicates a strong response, with the IPO subscribed 7.80 times on its first day. This high subscription rate reflects investor confidence in the company’s growth prospects.

In terms of financial performance, Manba Finance has showcased substantial growth. For the fiscal years ending 2022, 2023, and 2024, the company's revenues were ₹10,661.94 Millions, ₹13,331.71 Millions, and ₹19,163.22 Millions, respectively. The EBITDA for the same periods stood at ₹6,304.11 Millions, ₹8,385.19 Millions, and ₹12,525.27 Millions. The Profit after Tax (PAT) figures were ₹974.02 Millions, ₹1,658.01 Millions, and ₹3,141.97 Millions, indicating a robust growth trajectory.

For the Manba Finance IPO, the pre-issue Earnings Per Share (EPS) is ₹8.34, with a post-issue EPS of ₹6.25. The pre-issue P/E ratio is 14.38x, while the post-issue P/E ratio is 19.2x, compared to an industry P/E ratio of 13.45x. This pricing suggests that the IPO is fairly valued, aligning with industry standards.

The company's Return on Capital Employed (ROCE) for FY24 stands at 19.39%, and the Return on Equity (ROE) is 15.66%, further reinforcing its financial health and operational efficiency.

Investors should be aware that the Grey Market Premium (GMP) indicates potential listing gains of 38% to 42%. Given the strong financial performance and positive valuation metrics, risk-averse investors are advised to consider applying for the Manba Finance Limited IPO, either for potential listing gains or as a long-term investment opportunity.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. Readers are requested to take professional advice before investing.

About the Author: CA Abhay Kumar (also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. With over 8 years of experience in the stock market, he specializes in both technical and fundamental analysis.

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