Manba Finance shares to debut today; GMP indicates strong listing

Ahead of the listing, the company’s shares were trading with a GMP of Rs 38 in the grey market. Considering the upper price band of Rs 120, the stock is expected to list at a premium of 32% over the issue price.

However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

The company intends to use the proceeds from the fresh issuance to augment its capital base and meet future capital requirements.

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).Also Read: IPO Calendar: 3 new issues, 12 listings to keep primary market busy this weekIt 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.

Hem Securities acted as the sole book-running lead manager and Link Intime India was the registrar for the issue.

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