Manba Finance lists with 25% premium after overwhelming IPO subscription
Manba Finance Limited has made a solid debut on the Bombay Stock Exchange (BSE) today, with shares listing at ₹150 each. This marks a significant 25% premium over the initial public offering (IPO) price of ₹120 per share. However, these listing gains were slightly below the gray market predictions, where shares were trading at an approximately 28% premium.
Manba Finance's IPO witnesses overwhelming response
The ₹151-crore IPO of Manba Finance, which included a fresh issue of 1.26 crore shares, received an overwhelmingly positive response with a subscription rate of 224.10 times. Investors bid for a staggering 197.18 crore shares during the subscription period from September 23 to September 25, compared to the offer size of just 87.99 lakh shares, according to exchange data.
Non-institutional investors lead subscription race in Manba Finance's IPO
Non-institutional investors really went all out in Manba Finance's IPO, subscribing 511.65 times their share! Qualified institutional buyers and retail investors weren't far behind either, showing serious interest by bidding 148.55 times and 144.03 times their respective quotas. The company had raised ₹45.25 crore from eight institutional investors via its anchor book on September 20, with Chartered Finance & Leasing being the biggest backer.
Manba Finance's business model and future plans
Founded in 1998, Manba Finance provides a range of financial solutions for new two-wheelers, three-wheelers, electric vehicles (EVs), used cars, small business loans, and personal loans. The company mainly serves salaried and self-employed individuals, offering them customized financing programs. They generally finance up to 85% of a vehicle's on-road price. The net proceeds from the IPO will be utilized to strengthen its capital base for future growth.
