Manba Finance IPO fully subscribed within one hour, GMP soars
Manba Finance's initial public offering (IPO) was fully subscribed within just one hour of the bidding process commencing today. The robust demand from retail and non-institutional investors (NII) category investors drove this swift subscription. By 11:40 am, the public issue had been subscribed 6.47 times over, with the retail category seeing a subscription rate of 9.31 times and the NII portion attracting 8.46 times bids.
Grey market premium surges amid strong demand
At the time of writing, the gray market premium (GMP) for Manba Finance surged to ₹64, representing a 53% premium in the unlisted market. This increase comes after the GMP was at ₹55-₹60 ahead of bidding, indicating a 46% premium over the issue price. Prior to the issue opening, Manba Finance had already raised ₹45 crore from anchor investors, further demonstrating strong investor interest in the company's public offering.
Manba Finance's IPO: A closer look at the details
The IPO of Manba Finance is entirely a fresh issue of up to 1.25 crore shares, with no offer-for-sale component. The company aims to raise around ₹151 crore through this public issue which will remain open until September 25. The price band for the Manba Finance IPO has been set at ₹114-₹120 per equity share.
Proceeds to boost capital base, meet future needs
Manba Finance plans to use the proceeds from this fresh issuance to bolster its capital base and meet future capital requirements. The Mumbai-based company offers financial solutions to both salaried and self-employed individuals, with a quick turnaround time for loan sanction and disbursement. In fiscal 2024, Manba Finance held one of the highest shares of two-wheeler loans, accounting for 92% of its assets under management (AUM).
Manba Finance's impressive growth and future listing
Manba Finance's AUM rose from ₹495.82 crore in FY 2022 to ₹936.85 crore in FY 2024, reflecting a compound annual growth rate (CAGR) of 37.46%. The company reported a profit of ₹31.41 crore in FY24, an 89.50% increase from the previous year's ₹16.58 crore. Its revenue for FY24 also saw significant growth, rising by 43.71% to ₹191.58 crore from the previous year's ₹133.32 crore due primarily to higher interest income.
