Manba Finance Ltd, a Maharashtra-based Non-Banking Financial Company (NBFC), has set a price band of Rs 114 to Rs 120 per share for its upcoming Rs 151-crore initial public offering (IPO). The offering will be open for public subscription from September 23 to September 25, with a fresh issue of 1.26 crore shares. The proceeds will be directed towards strengthening the company’s capital base for future lending and corporate growth. As Manba Finance's financials display impressive growth with a 37.5% CAGR, this IPO aims to attract institutional and retail investors alike. Here’s a breakdown of the critical aspects:

Manba Finance Announces IPO Price Band

Price Band and IPO Dates Confirmed Manba Finance Ltd has set the price band for its Rs 151-crore IPO between Rs 114 and Rs 120 per share. The IPO will be open for subscription from September 23 to September 25, 2024.
Fresh Issue of Shares
The entire IPO consists of a fresh issue of up to 1.26 crore shares, valued at Rs 151 crore at the upper end of the price range.

Allocation Structure of the IPO

Stakeholders and Promoters Currently, the promoters of Manba Finance hold 100% of the company. The IPO will introduce new stakeholders from various categories of investors.
Allocation Breakdown
Half of the issue is reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors, ensuring a broad distribution among diverse investor segments.

Purpose of the IPO

Capital Augmentation The company intends to use the proceeds primarily to bolster its capital base, preparing for future capital requirements in onward lending activities.
General Corporate Purposes
A portion of the funds will also be allocated toward general corporate purposes, aiding in the company's operational expansion and strategic development.

Investment Details

Minimum Investment Threshold Investors must bid for a minimum of 125 equity shares, with further bids made in multiples of 125 shares. This structure ensures an accessible entry point for various investor categories.

Business Overview of Manba Finance

Diverse Financial Services Manba Finance provides a range of financial solutions, including auto loans, used car loans, small business loans, and personal loans. It has a notable presence across six Indian states, operating in 66 locations.

Growth in Financial Performance

Rapid Expansion of Assets Under Management (AUM) Manba Finance's AUM witnessed substantial growth, rising from Rs 495.82 crore in FY22 to Rs 936.85 crore in FY24, marking a compound annual growth rate (CAGR) of 37.5%.
Significant Profit and Revenue Growth
The company’s profit surged by 89.5% in FY24, reaching Rs 31.41 crore compared to Rs 16.58 crore in the previous year. Revenue increased by 44%, climbing to Rs 191.58 crore in FY24 from Rs 133.32 crore in FY23.

Lead Manager for the Issue

Hem Securities Hem Securities has been appointed as the sole lead manager for Manba Finance's IPO, managing the intricate financial logistics and ensuring the smooth execution of the share sale.
This IPO not only provides a unique investment opportunity but also reflects Manba Finance's consistent growth trajectory and strategic expansion plans across India's financial landscape.