Manba Finance IPO Listing On Sept 30: Latest GMP Hints At Double-Digit Premium Debut; Check Key Details Here

Manba Finance IPO: The NBFC player is set to list on September 30, 2024, after it allots shares. The Rs 150.84 crore IPO received an oversubscription of 224.05 times during the 3-day bidding between September 23-25. The latest grey market premium (GMP) signals a double-digit premium listing on Monday.

Manba Finance Listing:

As per Investor Grain, Manba Finance IPO's latest GMP is at Rs 33 in the early hours of September 30, 2024. With a price band of 120.00, Manba Finance IPO's estimated listing price is ₹153 (cap price + today's GMP). The expected percentage gain/loss per share is 27.50%.

According to Anand Rathi, Manba Finance Bank Ltd has established relationships with more than 1100 Dealers with the ability to expand to new underpenetrated geographies (currently present in 66 locations spread across six states in western, central and north India) and a Technology drive and scalable operating model with quick Turn Around Time (TAT) for loan processing (5.30 days as of March 31, 2024).

Arihant Capital pointed out that The company is well-positioned for lucrative growth through strategic expansion into 66 locations across six states, leveraging a hub-and-spoke model and a strong focus on customer and dealer satisfaction, resulting in a significant increase in AUM. With robust relationships with over 1,100 dealers, including 190 EV dealers, it efficiently addresses customer needs for vehicle financing, particularly in the growing EV market, where New Vehicle Loans constitute 97.90% of its AUM.

Additionally, Arihant's note said, diversified funding sources and a co-lending arrangement enhance financial management. Plans to introduce Used Car Loans, Small Business Loans, and Personal Loans further diversify the portfolio, targeting existing customers and expanding market reach.

Meanwhile, brokerage SMIFS expects the company's 2-wheeler sales volume to increase at a CAGR of 8-10% to 23.9 million with a sales value of ₹18,64,480.4 million in FY27. It also expects two-wheeler disbursements to grow at a 14-16% CAGR from FY24 to FY27, driven by the recovery in scooter sales with improvement in urban sentiments, increased two-wheeler EV penetration, and improving rural infrastructure.

While recommending to subscribe for the IPO, SMIFS highlighted that Manba is a long-term investment as the company is small with limited presence across the country to date and elevated NPA levels, though with a decent growth track record and also decent growth opportunity in future.

The 100% book-building IPO opened on September 23 and closed on September 25. The IPO's price band was Rs 114 per share to Rs 120 per share.

The IPO subscribed 224.10 times on the final day of the bidding. From the total, the portion reserved for Non-Institutional Investors (NII) oversubscribed by 511.65x, followed by Retail Individual Investors (RIIs) portion that oversubscribed by 144.03x. Also, the Qualified Institutional Buyers (QIBs) portion subscribed by 148.55x.

Manba Finance Limited, established in 1998, is a leading NBFC that primarily specializes in offering loans for two-wheeler vehicles (2Ws). It has also expanded into providing loans for three-wheeler vehicles (3Ws), electric three-wheelers (EV3Ws), electric two-wheelers (EV2Ws), used car loans, small business loans, and personal loans.