Manba Finance IPO: Company Files DRHP with SEBI For Fundraising

Manba Finance IPO is a book-built issue. This upcoming IPO is entirely a fresh issue of 1.25 crore equity shares and no offer for sale segment is present. 

This new IPO issue is being made through the book building process, where 50% of the share is reserved for the qualified institutional investors. For retail investors 35% is reserved and the remaining 15% is for the non-institutional investors.

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About Manba Finance Limited

Manba Finance Limited is an NBFC company established in 1996, engaged in the business of disbursing loans. It provides financial service solutions for different kinds of loans such as two wheeler loans, three wheeler loans, pre-owned two wheeler loans. Other than this Manba Finance also offers small business loans and personal loans. 

According to the Manba Finance website data, the company has disbursed more than 900K loans and has an 800+ dealers network in 64 locations across five states. Company had a team of 1300+ members working together to achieve their goal.

This NBFC had Asset Under Management (AUM) of Rs 800 crore as on December 2023. Manba’s loan portfolio comprises 99% of new auto loans with a ticket size of around 0.8 lakh. Moreover, the company also provides financial services to its target customers who are looking for quick loan sanctioning and disbursement.

Manba Finance Limited: Objective of IPO and Financials

The net proceeds from the Manba Finance issue will be utilised to augment the capital base of a company to meet the working capital requirements. The amount will be utilised for the onward lending. Other than this, the general corporate will also be met.

Manba Finance Limited reported a total income of Rs 8,828.93 lakhs and profit after tax of Rs 1,680.36 lakhs for the six months period ended on 30 September 2023. For the same period, Gross NPA stands at 3.90% and Net NPA stands at 3.16%.   

The book-running lead manager of Manba Finance Limited IPO is Hem Securities. The registrar for this new IPO is Link Intime India Private Limited.

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