The Rs 151-crore initial public offering (IPO) of Manba Finance continued to attract significant investor interest, with the issue being subscribed 58.93 times on September 24, the second day of bidding. Investors placed bids for 51.85 crore equity shares against the offer size of 87.99 lakh shares.
The non-banking finance company (NBFC) aims to raise Rs 150.84 crore entirely through a fresh issue of 1.25 crore equity shares in the price range of Rs 114-120 per share.
Investor categories showed varying levels of interest, with non-institutional investors leading the way, subscribing 129.23 times the allotted quota, followed by retail investors at 60.46 times the reserved portion. The segment for qualified institutional buyers (QIBs) was subscribed 3.53 times, according to exchange data.
Mumbai-based two- and three-wheeler financing company Manba Finance mobilised Rs 45.25 crore from anchor investors on September 20. Major anchor investors included Chartered Finance & Leasing, Antara India Evergreen Fund, Belgrave Investment Fund, Finavenue Growth Fund and Vikasa India EIF I Fund.
The proceeds of the IPO are intended to enhance the capital base to sufficiently meet the future needs.
Presently, its loan portfolio comprised 97.90 percent of new vehicle loans with an average ticket size for two-wheeler loans at Rs 80,000 and three-wheelers at Rs 1,40,000. The NBFC operates through 66 locations connected to 29 branches across six states: Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. Manba Finance also provides loans against used cars, small business loans, and personal loans.
The company’s shares are trading at a 50 percent premium in the grey market compared to peers like Baid Finserv, Arman Financial Services, and MAS Financial Services, which are listed, according to market observers, sentiment in front of its listing is particularly strong among investors.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
