Manba Finance IPO Listing: Stock lists at 25% premium over IPO price

Manba Finance IPO Listing

Manba Finance IPO Listing: A Strong Market Debut for Another NBFC

Manba Finance marked its entry into the stock market today with a successful Initial Public Offering (IPO) valued at ₹150.84 crore.

The IPO was open for subscription from September 23 to September 25, drawing considerable interest from investors across various segments.

This heightened enthusiasm culminated in an extraordinary oversubscription rate, exceeding 224 times the total offering, indicating robust market confidence in the company’s growth potential.

Market Performance Post-Listing

The shares were offered at an issue price of ₹120 per share. On their debut, Manba Finance’s shares opened at ₹150.00 on the Bombay Stock Exchange (BSE) and ₹145.00 on the National Stock Exchange (NSE).

This immediate jump of 25% in share price reflected the strong demand and positive sentiment surrounding the stock.

After this initial surge, the shares further escalated, hitting the upper circuit limit of ₹157.45 on the BSE and closing at this peak by the end of the first trading day.

Consequently, investors who participated in the IPO found themselves enjoying a total gain of 31.21% within just one day—a testament to the solid market support for Manba Finance.

Investor Demand and Subscription Details

The overwhelming response to Manba Finance’s IPO can be attributed to various factors, including its business model, growth potential, and the overall bullish sentiment in the NBFC sector. The subscription data further illustrates the heightened investor interest:

• Qualified Institutional Buyers (QIBs): This segment was subscribed 148.55 times, showcasing strong backing from institutional investors who often conduct thorough due diligence before committing capital.
• Non-Institutional Investors (NIIs): This segment witnessed an astonishing subscription rate of 511.62 times, reflecting the appetite of high-net-worth individuals and other non-institutional players eager to capitalize on the company’s promising prospects.
• Retail Investors: The portion reserved for retail investors was filled 143.95 times, highlighting the widespread enthusiasm among individual investors.

In total, 1,25,70,000 new shares were issued, each with a face value of ₹10. The funds raised through this IPO will be primarily directed towards strengthening the company’s capital base, which is essential for its expansion plans and operational stability.

About Manba Finance

Founded in 1998, Manba Finance operates as a base-level non-banking financial company (NBFC-BL). The firm specializes in providing a variety of loan products, including vehicle loans, small business financing, and personal loans.

With a unique proposition of financing up to 85% of vehicle costs, Manba Finance has established itself as a significant player in the retail financing space.

The company’s mission is to empower individuals and small businesses by providing accessible financial solutions that help them achieve their goals.

As the demand for credit continues to rise, especially among underserved segments, Manba Finance aims to bridge the gap by offering flexible financing options tailored to its customers’ needs.

Financial Performance and Growth Trajectory

Manba Finance has exhibited a commendable financial performance over the past few years, underscoring its robust business model and operational efficiency.

• Fiscal Year 2022: The company reported a net profit of ₹9.74 crore.
• Fiscal Year 2023: This figure saw significant growth, reaching ₹16.58 crore, a clear indication of the company’s effective strategies in capturing market share and enhancing operational efficiencies.
• Fiscal Year 2024: Continuing on this upward trajectory, the net profit further surged to ₹31.42 crore.

These figures highlight not only the company’s impressive growth but also its ability to scale operations efficiently while managing costs effectively.

Furthermore, Manba Finance’s revenue has grown at a compound annual growth rate (CAGR) of over 34%, culminating in a total revenue of ₹191.63 crore in FY 2024.

This consistent growth signals the company’s strong positioning within the competitive NBFC landscape.

Strategic Initiatives and Future Outlook

Looking ahead, Manba Finance has laid out ambitious plans for its future. The capital raised from the IPO will play a crucial role in enhancing its operational capabilities, expanding its product offerings, and reaching new customer segments.

The company aims to invest in technology to streamline its loan processing and customer service operations, which will improve the overall customer experience.

Additionally, Manba Finance plans to broaden its geographic footprint, reaching more underserved markets and tapping into the growing demand for retail financing.

The NBFC sector in India is poised for significant growth, driven by increasing consumer demand for loans, especially in the context of rising consumer spending and a growing middle class.

As traditional banks often have stringent lending criteria, NBFCs like Manba Finance are well-positioned to fill this gap by offering more accessible credit solutions.

Final Remarks

The successful market debut of Manba Finance serves as a strong indicator of investor confidence in the NBFC sector and the company’s solid fundamentals.

With an impressive IPO performance and robust financial growth, Manba Finance is poised for a promising future. As it continues to expand its operations and enhance its service offerings, investors and market observers will be keenly watching how the company leverages its recent success to solidify its position as a leading player in the financial services landscape.

With its strong commitment to empowering individuals and small businesses, Manba Finance stands ready to seize new opportunities, paving the way for sustained growth and profitability in the years to come.