Manba Finance Limited’s Initial Public Offering to open on Monday, September 23, 2024, price band set at ₹114/- to ₹120/- per Equity Share
The Initial
Public Offering (“IPO” or “Offer”) of the Company will open on Monday, September 23, 2024, for subscription and close on Wednesday,
September 25, 2024. Investors can bid for a minimum of 125 Equity Shares and in multiples of 125 Equity Shares
thereafter.
The IPO is entirely
a fresh issue of up to 1,25,70,000 shares with no offer of
sale component.
The proceeds from its
fresh issuance will be utilized to augmenting the capital base to meet the
Company’s future capital requirements.
Manba Finance commenced its business
in 1998 as a NBFC from Mumbai, Maharashtra and scaled up its operations from
2009 by way of growth in number of branches and locations across states. 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, Maharashtra 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 upto 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% from FY 2022 to FY 2024.
Manba Finance's Assets Under
Management (AUM) increased from Rs 495.82 crore in FY
2022 to Rs 936.85 crore in FY 2024. with a CAGR of 37.46%.
Manba Finance clocked a
profit of Rs 31.41 crore in the financial year FY24, up 89.50% from Rs 16.58
crore in the previous year. Revenue during the year FY24 increased
significantly to Rs 191.58 crore from Rs 133.32 crore in the previous year, an
increase of 43.71%, primarily due to an increase in interest income.
The issue is being
made through the book-building process, wherein not more than 50% of the issue
shall be available for allocation on a proportionate basis to qualified
institutional buyers, not less than 15% of the issue shall be available for
allocation to non-institutional bidders, and not less than 35% of the issue
shall be available for allocation to retail individual bidders.
Hem Securities
Limited is the sole book running lead manager, and Link Intime India Private
Limited is the registrar of the issue.
Notes for Reference:
Issue Size of the IPO based on the
upper and lower end of the price band
|
|
Fresh Issue
(1,25,70,000 equity shares) |
|
Lower Band (@
Rs 114) |
Rs 143.30
crore |
|
Upper Band (@
Rs 120) |
Rs 150.84
crore |
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