Manba Finance IPO Sees Strong Demand, Subscribed 138 Times on Day 3, HNI Portion Booked 375x

Manba Finance, a Mumbai-based non-banking finance company (NBFC), is receiving overwhelming interest from investors as its initial public offering (IPO) closes today. The shares are being offered in a price range of Rs 114-120 per share, with a minimum application requirement of 125 shares.

The IPO, aiming to raise Rs 150.84 crore through the sale of 1.25 crore fresh equity shares, has seen a surge in demand, particularly from high-net-worth individuals (HNIs). By early afternoon on Day 3 of the offering, bids were placed for 1.21 billion shares, 138 times the available 87.99 lakh shares. HNIs led the charge with a subscription of 376 times their allocation, while retail investors subscribed 106 times their reserved portion. Qualified institutional buyers (QIBs) had bid for nearly 15 times their allocation.

Manba Finance, established in 1998, provides a variety of loan products, including financing for two-wheelers, three-wheelers, electric vehicles (EVs), used cars, small business loans, and personal loans. Despite strong financial backing and business expansion plans, the grey market premium (GMP) for the IPO has slightly dropped, with the company now commanding a premium of Rs 58-60, down from Rs 65 a day earlier.

Analysts from leading brokerage firms remain positive about the IPO, citing strong fundamentals, the rising demand for loans, and Manba's strategic expansion into 66 locations across six states. However, some concerns persist regarding the rising cost of capital and increasing non-performing assets (NPAs).

Manba’s ability to build strong relationships with dealers, particularly in the growing EV market, and its focus on customer satisfaction has helped it achieve significant growth in assets under management (AUM). In FY22, Manba reported lower gross non-performing assets (GNPA) at 4.9% compared to its peers, while its AUM grew at 37% CAGR over FY22-24. The company's robust financial performance and diversified funding sources have attracted positive recommendations from analysts.

The IPO's tentative listing date is set for September 30, and shares will be traded on both the BSE and NSE.