manba finance ipo: Manba Finance IPO opens for subscription. Should you bid or skip?

The IPO is entirely a fresh issue of up to 1.25 crore shares with no offer-for-sale component. Through the issue, the company plans to raise around Rs 151 crore.

The company has fixed a price band of Rs 114-120 per share, where investors can bid for 125 shares in one lot.

In the unlisted market, the company’s shares are trading with a GMP of Rs 60, which indicates a premium of 50% over the issue price.

Manba Finance IPO review

Analysts advised investors with high-risk tolerance can apply to the IPO as the valuations are fully priced in. The company demonstrated robust growth in revenue, margins and other positive financial metrics.Also Read: Indian IPO market boom continues with 10 new issues, 11 listings scheduled next week

“Investors with a high-risk tolerance may consider applying for the issue after careful consideration of the potential risks and market volatility,” said Swastika Investmart.

Based in Mumbai, the company provides financial solutions to both salaried and self-employed individuals, offering a quick turnaround time (TAT) for loan sanction and disbursement.

In FY24, Manba Finance had one of the highest shares of two-wheeler loans, accounting for 92% of its assets under management (AUM). It is also ranked third in AUM per branch at Rs 14.41 crore, behind companies such as Arman Financial, Baid Finserv, Berar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp, and TVS Credit. Manba Finance also had the fastest branch growth, with a CAGR of 40.3% from FY 2022 to FY 2024.

Its AUM increased from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024, reflecting a compound annual growth rate (CAGR) of 37.46%.

The company posted a profit of Rs 31.41 crore in FY24, an 89% increase from Rs 16.58 crore in the previous year. Revenue for FY24 grew significantly to Rs 191.58 crore from Rs 133.32 crore in FY23, a rise of 44%, driven primarily by higher interest income.

Manba Finance will list its equity shares on the BSE and NSE. Hem Securities is the sole book-running lead manager, and Link Intime India is the registrar for the issue.

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