The Manba Finance Limited IPO is now open for subscription starting September 23, 2024, and will remain open until September 25, 2024. The issue, comprising a fresh issue of 125.7 lakh shares, is expected to raise ₹150.84 crore. Manba Finance, a Non-Banking Financial Company - Base Layer (NBFC-BL), offers a diverse range of financial solutions, specializing in new 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's AUM stands at over ₹900 crore.

Manba Finance IPO Details

The IPO price band is set between ₹114 and ₹120 per equity share, with investors required to apply for a minimum of 125 shares per lot. For retail investors, the minimum investment is ₹15,000, while high-net-worth individuals (HNIs) must invest in 14 lots (1,750 shares), which amounts to ₹2,10,000.

Hem Securities Limited is serving as the book-running lead manager for the IPO, while Link Intime India Private Limited has been appointed as the registrar. The shares are expected to be listed on both the BSE and NSE, with the tentative listing date set for September 30, 2024.

Anchor Investors

Manba Finance successfully raised ₹45.25 crore from anchor investors on September 22, 2024, at ₹120 per share. A total of 37,71,000 equity shares were allocated to anchor investors, who have subscribed at the upper price band. The anchor portion is part of the Qualified Institutional Buyers (QIBs) reservation.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Manba Finance IPO is currently estimated between ₹45 and ₹50, indicating strong demand for the shares. While Grey Market Premium provides an early indication of potential listing gains, it's important to remember that it is an unofficial and unregulated market. GMP values fluctuate based on demand and supply, but based on current trends, investors can expect potential listing gains of 38% to 42%.

Financial Performance

Manba Finance has shown solid growth over the last three fiscal years. The company’s revenue increased from ₹10,661.94 million in FY22 to ₹19,163.22 million in FY24. Similarly, EBITDA grew from ₹6,304.11 million in FY22 to ₹12,525.27 million in FY24, demonstrating the company's robust financial health.

Here’s a quick breakdown of key financial metrics:

Revenue (FY24): ₹19,163.22 million

EBITDA (FY24): ₹12,525.27 million

Profit After Tax (FY24): ₹3,141.97 million

ROCE (FY24): 19.39%

ROE (FY24): 15.66%

Manba Finance’s pre-issue earnings per share (EPS) stands at ₹8.34, and post-issue EPS is expected to be ₹6.25. At the upper price band of ₹120 per share, the company’s pre-issue P/E ratio is 14.38x, while the post-issue P/E ratio is 19.2x. In comparison, the industry P/E ratio is 13.45x, indicating that the IPO is priced fairly but slightly on the higher side.

Subscription Status and Allotment Details

The subscription period for the Manba Finance IPO closes on September 25, 2024. Investors can track the real-time subscription status on various financial websites, offering updates on how different categories (retail, HNI, and QIB) are performing. The allotment of shares is scheduled for September 26, 2024.

To check the allotment status of Manba Finance Limited IPO:

Go to the IPO allotment status page on the registrar’s website.

Select Manba Finance IPO from the list of IPOs.

Enter your application number, PAN, or DP Client ID.

Click Submit to check your allotment status.

This straightforward process will help investors determine whether they have been allotted shares and proceed accordingly with their investment.

Future Outlook and IPO Objectives

Manba Finance intends to utilize the net proceeds from the IPO to augment its capital base. This additional capital will help the company meet its future growth and operational requirements, particularly as it continues to expand its footprint in the financing of electric vehicles (EV2Ws and EV3Ws).

Why Should You Consider the Manba Finance IPO?

Sector Growth Potential: As the Indian vehicle financing market, particularly in the electric segment, expands, Manba Finance is well-positioned to capture this growth.

Strong Financials: With consistent revenue and EBITDA growth, the company has demonstrated its ability to manage operations efficiently while maintaining profitability.

Grey Market Sentiment: The current GMP suggests a potential upside on listing day, making it an attractive option for investors looking for listing gains.

Disclaimer and Caution

While the Grey Market Premium shows promise for listing gains, investors should consider all risks before investing. This review is for informational purposes only and should not be construed as financial advice. Consult a financial advisor to determine if this IPO aligns with your investment strategy.

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