Manba Finance Shares List at 25% Premium Over IPO Price

Manba Finance Shares List Mumbai, September 30, 2024 – In a remarkable debut on the Bombay Stock Exchange (BSE), shares of Manba Finance Limited listed at Rs 150, a 25% premium over its IPO price of Rs 120. The strong performance comes after the company’s Rs 151 crore IPO, which garnered overwhelming interest from investors, oversubscribed by an impressive 224.10 times.

Strong Market Response to Manba Finance IPO

The Manba Finance IPO opened for subscription between September 23-25, 2024, offering 1.26 crore fresh shares to the market. The response was exceptional, with investors bidding for 197.18 crore shares against the offer size of 87.99 lakh shares. This oversubscription was led by non-institutional investors who oversubscribed their portion 511.65 times, while qualified institutional buyers (QIBs) and retail investors oversubscribed their respective portions 148.55 times and 144.03 times.

Although the shares listed at a strong premium, the grey market premium (GMP), which was hovering around 28%, predicted slightly higher gains. The grey market is an informal marketplace where shares trade before their official listing.

Anchor Investors Secure Large Stake

Ahead of the IPO, Manba Finance raised Rs 45.25 crore through its anchor book, securing investment from eight institutional investors. The largest anchor investor was Chartered Finance & Leasing, which acquired 8.33 lakh shares valued at Rs 10 crore. Other prominent investors included Finavenue Capital Trust and Antara India Evergreen Fund, both of which purchased 4.2 lakh shares each.

The anchor investment provided a solid foundation for the IPO, reflecting the high investor confidence in the company.

Manba Finance: A Trusted Name in Vehicle Financing

Established in 1998, Manba Finance has emerged as a significant player in the financing sector, focusing primarily on two-wheelers, three-wheelers, electric vehicles, used cars, and small business loans. The company’s strength lies in offering customized financing solutions tailored to meet the needs of both salaried individuals and self-employed professionals. It typically funds up to 85% of a vehicle’s on-road price, ensuring greater affordability for its customers.

Manba Finance’s unique business model, along with its focus on high-growth vehicle segments, has allowed it to expand rapidly over the years. The company has maintained a robust track record of financial performance, thanks to its specialized approach in financing electric vehicles and personal loans.

Utilization of IPO Proceeds

The company plans to utilize the proceeds from the IPO to bolster its capital base, enabling it to meet future expansion plans and fund more vehicle and business loans. Strengthening its capital base is crucial for Manba Finance to maintain its competitive edge and scale its operations in a fast-growing market.

Looking Ahead

The successful listing of Manba Finance is a testament to the growing demand for financial services catering to vehicle loans and personal financing. As the company looks to expand further, its well-established market presence, combined with the capital raised from the IPO, is expected to support long-term growth.

For retail and institutional investors alike, Manba Finance represents a promising investment in a rapidly growing financial services sector. The company’s ability to cater to both traditional vehicles and the expanding market of electric vehicles positions it well for future opportunities.

The Manba Finance IPO has set a positive tone in the market with its listing at a 25% premium over the issue price. The oversubscription of over 224 times indicates the high confidence investors have in the company’s future. With strong backing from anchor investors and a clear growth strategy, Manba Finance looks poised for sustained growth in the vehicle financing space.