Manba Finance IPO subscribed 40 times so far on Day 2, retail portion booked 45X

The initial public offer (IPO) of Manba Finance received strong demand on its second day after sailing through on the first day, with the issue being subscribed 40 times so far.

Around 12 noon, the retail category was subscribed 45.35 times, while the NII portion garnered 80.80 times bids. Meanwhile the Qualified Institutional Buyer (QIB) portion had been subscribed by 3 times.

The grey market premium (GMP) for Manba Finance has surged to Rs 60, representing a 50% premium in the unlisted market.


Ahead of the issue opening, the company raised Rs 45 crore from anchor investors.

The IPO is entirely a fresh issue of up to 1.25 crore shares with no offer-for-sale component. Through the issue, the company plans to raise around Rs 151 crore.

The company has fixed a price band of Rs 114-120.

The company intends to use the proceeds from the fresh issuance to augment its capital base and meet future capital requirements.

Based in Mumbai, the company provides financial solutions to both salaried and self-employed individuals, offering a quick turnaround time (TAT) for loan sanction and disbursement.

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In fiscal 2024, Manba Finance had one of the highest shares of two-wheeler loans, accounting for 92% of its assets under management (AUM). It also ranked third in AUM per branch at Rs 14.41 crore, behind companies such as Arman Financial, Baid Finserv, Berar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp, and TVS Credit. Manba Finance also had the fastest branch growth, with a CAGR of 40.3% from FY 2022 to FY 2024.

Manba Finance's AUM increased from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024, reflecting a compound annual growth rate (CAGR) of 37.46%.

The company posted a profit of Rs 31.41 crore in FY24, an 89.50% increase from Rs 16.58 crore in the previous year. Revenue for FY24 grew significantly to Rs 191.58 crore from Rs 133.32 crore in FY23, a rise of 43.71%, driven primarily by higher interest income.

Manba Finance will list its equity shares on the BSE and NSE. Hem Securities is the sole book-running lead manager, and Link Intime India is the registrar for the issue.

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