Manba Finance Limited Rs. 150.84 crore IPO Opens on 23 September 2024 Price Band Set at Rs. 114 – 120 Per Share.
by Prashant Kapadia/NHN
Key Highlights:Manba Finance Limited (Price Band Rs 114 – Rs 120 per equity share) | Issue size – Rs. 150.84 Cr, RBI-registered NBFC, providing tailored financial solutions for two-wheelers, three-wheelers, used cars, small business loans, and personal loans., announcing the launch of its Main Board IPO on NSE and BSE.
Company website: https://www.manbafinance.com/
IPO Subscription dates:
IPO Opens on – 23rd September 2024
IPO Closes on – 25th September 2024
Bid Lot: 125 Equity Shares and in multiple thereafter,
Fresh Issue of aggregating up to 1,25,70,000
QIB: Not more than 50% of the offer: Rs.75.42 Crs
NII: Not Less than 15% of the offer: Rs.22.63 Crs
Retail: Not Less than 35% of the offer: Rs. 52.79 Cr
• 28+ years of experience having presence in the financial sector, particularly in Maharashtra and Gujarat, with a growing footprint in other regions.
• Operating through a network of 66 locations, Manba Finance has established strong relationships with over 1100 dealers with 190+ EV dealers.
• Asset under Management (AUM) of over Rs. 900 Crores with a CAGR growth of 37.5% supported by strong Disbursements of Rs. 633 Crores (CAGR growth – 47.6%)
• Net Interest Income (NII) grew by CAGR of 35.7% to Rs. 88 Crores due to increase in Gross Total Income by CAGR of 19.9% to Rs. 192 Crores
• Profit after Tax (PAT) at Rs. 31 Crores with CAGR growth of 80%
• GNPA: 3.95%, NNPA: 3.16%, ROE: 17.03%, ROA: 3.57% and Capital Adequacy ratio (CAR): 25.17%
Sole BRLM to the Issue – Hem Securities Limited.
RHP LINK:https://hemadmin.hemsecurities.com/images/Files/InvestmentBanking/1291.pdf
Mumbai, September 18, 2024: Manba Finance Limited, a NBFC-BL providing financial solutions for New two-wheeler (2Ws,) three-wheeler (3Ws), electric two-wheeler (EV2Ws), electric three-wheeler (EV3Ws), Used Cars, Small Business Loans and Personal Loans, has fixed the price band of ₹114/- to ₹120/- per Equity Share of face value ₹10/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, September 23, 2024, for subscription and close on Wednesday, September 25, 2024. Investors can bid for a minimum of 125 Equity Shares and in multiples of 125 Equity Shares thereafter.
The IPO is entirely a fresh issue of up to 1,25,70,000 shares with no offer of sale component.
The proceeds from its fresh issuance will be utilized to augmenting the capital base to meet the Company’s future capital requirements.
Manba Finance commenced its business in 1998 as a NBFC from Mumbai, Maharashtra and scaled up its operations from 2009 by way of growth in number of branches and locations across states. Its branches are located in urban, semi-urban and metropolitan cities and towns which serves the surrounding rural areas.
It is based out of Mumbai, Maharashtra and operates out of 66 Locations connected to 29 branches across six (6) states in western, central and north India. It has established relationships with more than 1,100 Dealers, including more than 190 EV Dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh. It has recently expanded its loan portfolio to Used Car Loans, Small Business Loans and Personal Loans and it intends to leverage its existing network to further penetrate the market with its new products.
It provides financial solutions to salaried and self-employed individuals with a quick turnaround time (TAT) for loan sanction and disbursement.
About 97.90% of its loan portfolio comprises of New Vehicle Loans with an average ticket size (ATS) of around ₹ 80,000 for two-wheeler loans and an average ticket size (ATS) of around ₹ 1,40,000 for three-wheeler loans.
Manba Finance funds upto 85% of the purchase price (on road price) of the vehicle proposed to be acquired by the customer, basis the internal credit policies, LTV and the customer’s existing cash-flows, CIBIL score and the collateral.
Manba Finance had the one of the highest shares of Two-wheeler loans at 92% of AUM in fiscal 2024. It also had the third highest AUM per branch at Rs 14.41 crore among Arman Financial, Baid Finserv, Berar Finance, Hero Fincorp, MAS Financial, Muthoot Fincorp, and TVS Credit, and the fastest growth in branches with a CAGR of 40.3% from FY 2022 to FY 2024.
Manba Finance’s Assets Under Management (AUM) increased from Rs 495.82 crore in FY 2022 to Rs 936.85 crore in FY 2024. with a CAGR of 37.46%.
Manba Finance clocked a profit of Rs 31.41 crore in the financial year FY24, up 89.50% from Rs 16.58 crore in the previous year. Revenue during the year FY24 increased significantly to Rs 191.58 crore from Rs 133.32 crore in the previous year, an increase of 43.71%, primarily due to an increase in interest income.
The issue is being made through the book-building process, wherein not more than 50% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the issue shall be available for allocation to non-institutional bidders, and not less than 35% of the issue shall be available for allocation to retail individual bidders.
Hem Securities Limited is the sole book running lead manager, and Link Intime India Private Limited is the registrar of the issue.