Mumbai-based NBFC sees all round subscription rush
MUMBAI, Sep 25 (The CONNECT) – The Initial Public Offering of Manba Finance Limited was subscribed 217.69 times as it received an overwhelming response from all the categories of investors today, the final day of bidding.
The issue received bids of 1,97,14,04,875 shares against the offered 87,99,000 equity shares, at a price band of ₹114-120, according to the data available on the stock exchanges.
Non-Institutional Investors Portion and Qualified Institutional Buyer Portion were subscribed 511.62 times and 148.55 times respectively, whereas Retail Portion was subscribed 143.95 times.
Hem Securities Limited is the sole book running lead manager, and Link Intime India Private Limited is the registrar of the issue.
Manba Finance commenced its business in 1998 as an NBFC from Mumbai and scaled up its operations from 2009. Its branches are located in urban, semi-urban and metropolitan cities and towns which serves the surrounding rural areas.
It is based out of Mumbai and operates out of 66 Locations connected to 29 branches across six (6) states in western, central and north India. It has established relationships with more than 1,100 Dealers, including more than 190 EV Dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh. It has recently expanded its loan portfolio to Used Car Loans, Small Business Loans and Personal Loans and it intends to leverage its existing network to further penetrate the market with its new products.
It provides financial solutions to salaried and self-employed individuals with a quick turnaround time (TAT) for loan sanction and disbursement.
About 97.90% of its loan portfolio comprises of New Vehicle Loans with an average ticket size (ATS) of around ₹ 80,000 for two-wheeler loans and an average ticket size (ATS) of around ₹ 1,40,000 for three-wheeler loans.
Manba Finance funds up to 85% of the purchase price (on road price) of the vehicle proposed to be acquired by the customer, basis the internal credit policies, LTV and the customer’s existing cash-flows, CIBIL score and the collateral.
Manba Finance had the one of the highest shares of Two-wheeler loans at 92% of AUM in fiscal 2024. It also had the third highest AUM per branch at Rs 14.41 crore among Arman Financial, Baid Finserv, Berar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp, and TVS Credit, and the fastest growth in branches with a CAGR of 40.3%.
Manba Finance’s Assets Under Management (AUM) increased from Rs 495.82 crore in fiscal 2022 to Rs 936.85 crore in fiscal 2024. with a CAGR of 37.46%.
