Manba Finance IPO, a mainline IPO in the finance sector, aims to raise ₹150.84 crore. Incorporated in 1996, Manba Finance operates as an NBFC. The Manba Finance IPO price range is set between ₹114 and ₹120, with the book-building issue open from 23rd September to 25th September 2024. The last GMP for the Manba Finance IPO was ₹58, suggesting an estimated listing price of ₹178.
₹35
₹120
₹145
Expert Opinions
Manba Finance IPO (MFL) is a two and three-wheeler financing company, offering personal, business, used car, and small business loans through 1,100+ dealers across six states. The company has shown steady growth in revenues and profits, with its IPO fully priced based on FY24 earnings. Investors may consider long-term investments.
The company is launching its maiden IPO of 1.257 crore fresh equity shares, raising ₹150.84 crore with a price range of ₹114-₹120 per share. The IPO, open from September 23-25, 2024, will list on BSE and NSE. MFL aims to use ₹138.77 crore from the proceeds to strengthen its capital base.
MFL’s financial performance includes ₹191.63 crore in income and ₹31.42 crore in net profit for FY24. The company has maintained strong margins with a PAT margin of 4.00% and RoCE of 15.66% for FY24. It also boasts a P/E ratio of 19.2 and net NPA of 3.16%. Hem Securities Ltd. is the sole book-running lead manager for the issue. Post-IPO, the company’s market cap is expected to be ₹602.87 crore.
Investor Considerations
Manba Finance operates in the finance sector, specifically as an NBFC, focusing on vehicle financing. The company’s IPO valuation metrics as of March 31, 2024, include an EPS of ₹8.34, NAV per share of ₹53.26, RoNW of 15.66%, and a P/BV ratio of 2.26, positioning it competitively against peers.
Manba Finance’s strategy includes expanding into new markets while increasing penetration in existing ones. The company continues to focus on vehicle finance, particularly in the 2W, 3W, EV segments, while diversifying into used car loans, small business loans, and personal loans. It aims to leverage its branch network, introduce new products, and invest in technology to enhance operations and customer experience.
For the IPO, retail investors are allocated 4,399,500 shares, non-institutional buyers 1,885,500 shares, and qualified institutions 2,514,000 shares, representing 35%, 15%, and 30% of the issue size, respectively.
| Date | GMP | Trend |
|---|---|---|
| 28 Sep 2024 18.22 | ₹35 | Down |
| 25 Sep 2024 10.45 | ₹55 | Up |
| 17 Sep 2024 19.49 | ₹00 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Manba Finance’s listing performance. While the GMP of ₹35 predicted a premium of 29.17% over the issue price, the actual listing delivered a gain of 20.83%. With a modest prediction error of 6.45%, the GMP correctly anticipated both the positive direction and approximate magnitude of the listing gains, though slightly overestimated the final premium, demonstrating reliable predictive value in this case.
Manba Finance IPO Current GMP is ₹35.
Manba Finance IPO Expected Returns is 29.16%.
Manba Finance IPO estimated listing price is ₹155.