Manba Finance IPO: Public Issue Subscribed 200x On Final Day, GMP Soars High; Allotment & Listing Dates?

The Initial Public Offering (IPO) of Mumbai-based non-banking finance company (NBFC) Manba Finance Ltd, which opened on September 23, has been witnessing strong demand from investors from various segments. The three-day subscription period concludes today, September 25, and the IPO has already seen heavy oversubscription, indicating high investor interest.

Manba Finance Ltd is an NBFC that has carved a niche in providing financial services across various sectors. The company primarily focuses on lending for new two-wheelers (2W), three-wheelers (3W), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans, and personal loans. As of March 31, 2024, Manba Finance had an Assets Under Management (AUM) size of Rs 937 crore.

About IPO
The Manba Finance IPO aims to raise Rs 150.84 crore through the issuance of 1.26 crore fresh equity shares, with the price band set at Rs 114-120 per share. The minimum investment required for retail investors is Rs 15,000, as they can apply for a minimum of 125 shares and in multiples thereafter. The IPO is entirely a fresh share sale of 1,25,70,000 equity shares, with no offer for sale (OFS) component.

Subscription Status
The Manba Finance IPO has received an overwhelming response from investors across categories. By 3:18 pm on September 25, the IPO had been subscribed 197 times, with bids for 1,73,24,55,250 equity shares against the total issue size of 87,99,000 equity shares on offer.

The retail portion has been subscribed 121.27 times, the Non-Institutional Investors (NII)segment has witnessed the highest demand, with a subscription rate of 490 times, and the Qualified Institutional Buyers (QIBs) category has been subscribed 109.39 times.

Grey Market Premium
The Grey Market Premium (GMP) trends further indicate strong demand for Manba Finance shares. As of today, the shares are commanding a GMP of Rs 65 per share, representing a premium of 54% over the upper price band of Rs 120 per share. This suggests that the shares are trading at Rs 185 (120 + 65) in the grey market.

IPO Allotment and Listing Details
The allotment of shares for the Manba Finance IPO is expected to be finalized on September 26, 2024. Investors who receive allotments will see the shares credited to their demat accounts before the company's listing date on September 30, 2024. The shares will be listed on both the BSE and NSE.

Utilization of Funds
The net proceeds from the IPO will primarily be used to strengthen Manba Finance's capital base and support future capital requirements. This infusion of funds is expected to enhance the company's lending capabilities and fuel its expansion into existing and new lending segments.

Several market analysts have shown a positive stance toward the Manba Finance IPO, recommending investors subscribe to the issue. The company's focus on multiple lending segments, its robust AUM growth, and the expansion into electric vehicle financing position it well for future growth. Moreover, the company's demonstrated ability to maintain a diversified loan portfolio across various vehicle categories makes it an attractive investment option in the NBFC space.