Manba Finance Limited IPO (Manba Finance IPO) Detail Review –
Manba Finance Limited IPO (Manba Finance IPO) Detail is set to open from 23rd Sept 2024 to 25th Sept 2024. In this article we will analyze the financials , strengths and weaknesses of the Northern Arc Capital Limited IPO (Northern Arc Capital IPO). Keep scrolling below to read more!
Manba Finance Limited IPO (Manba Finance IPO) Overview –
Established in 1998, Manba Finance Limited is a non-banking finance company (NBFC-BL) offering financial solutions for new two-wheelers (2Ws), three-wheelers (3Ws), electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), used cars, small business loans and personal loans.
The company’s target customers are mainly (i) employees and (ii) the self-employed. The Company tailors its offerings to each of these customer categories and creates customized programs. The Company typically finances up to 85% of the purchase price (on-road price) of the vehicle the customer wishes to purchase and prefers the customer to contribute the balance.
The company has branches in urban, semi-urban and metropolitan cities and towns serving the surrounding rural areas. The company has established relationships with more than 1,100 dealers, including more than 190 EV dealers in Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh and Uttar Pradesh.
As of March 31, 2024, the company employed a total of 1,344 people.
Manba Finance Limited IPO (Manba Finance IPO) Synopsis-
Manba Finance Limited IPO (Manba Finance IPO) is set to be open from 23rd Sept 2024 to 25th Sept 2024, offering fresh issue of 1.26 crore shares aggregating to Rs 150.84 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Monday, September 30th 2024.
The total issue size of this IPO amounts to Rs. 150.84 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 23rd Sept 2024 |
| Closing Date | 25th Sept 2024 |
| Lot Size | 125 Shares |
| Face Value | Rs 10 |
| IPO Size | Rs. 150.84 Cr |
| Fresh Issue | Rs. 150.84 Cr |
| IPO Price Range | Rs. 114 – 120 |
| Min. Investment | Rs. 15,000 |
| Offer for Sale (OFS) | N/A |
| Employee Discount | N/A |
| Basis of Allotment | 26th Sept 2024 |
| Refunds | 26th Sept 2024 |
| Listing Date | 30th Sept 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Manba Finance Limited IPO (Manba Finance IPO) Market Lot
Manba Finance Limited IPO (Manba Finance IPO) minimum market lot is 125 shares with ₹15,000 application amount. The retail investors can apply up to 13 lots with 1625 shares or ₹195,000 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 125 | ₹15,000 |
| Retail Maximum | 13 | 1,625 | ₹195,000 |
| S-HNI Minimum | 14 | 1,750 | ₹210,000 |
| B-HNI Minimum | 67 | 8,375 | ₹1,005,000 |
Manba Finance Limited IPO (Manba Finance IPO) Book Running Lead Managers –
- Hem Securities Limited
Manba Finance Limited IPO (Manba Finance IPO) Registrar to the offer –
The registrar for the Manba Finance Limited IPO (Manba Finance IPO) is Link Intime India Private Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- The Company proposes to utilize the Net Proceeds towards increasing its capital base to meet the Company’s future capital needs.
Key Performance Indicator –
The market capitalization of Manba Finance Limited is Rs 602.87 Cr.
KPI as of March 31, 2024.
| Earning Per Share (EPS): Post IPO | ₹6.25 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | 19.19 |
| Return on Net Worth (RoNW): | 15.65% |
| PAT Margin(%) | N/A |
| Net Asset Value (NAV): | ₹53.26 per Equity Share |
Financial Status –
The Manba Finance Limited’s revenue grew by 44% and PAT increased by 90% between FYs ended 31 March 2024 and 31 March 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The company’s total assets are Rs. 9,737.5 crore.
The company’s total revenue is Rs. 1,916.3 crore.
The company’s PAT is Rs. 314.2 crore.
The company’s net worth is Rs.2,006.10 crore
| Particulars(in Rs. Crores) | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|
| Revenue From Operations | 191.63 | 133.32 | 106.62 |
| PAT | 31.42 | 16.58 | 9.74 |
| Net Worth | 200.61 | 168.43 | 151.74 |
| Total Assets | 973.75 | 787.25 | 561.46 |
| Total Reserves and Surplus | 162.46 | 155.54 | 138.96 |
| Total Borrowings | 752.27 | 595.93 | 394.4 |
Evaluation of P/E Ratio :
The P/E Ratio of Manba Finance Limited is 14.38
Comparative Analysis with Listed Peers :
The average P/E Ratio of the industry is 13.45x.
The P/E ratio of Manba Finance Limited (14.38x), as compared with the industry’s average P/E of 13.45x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Manba Finance Limited IPO (Manba Finance IPO) –
Manba Finance Limited peer comparison with similar listed entities-
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|
| Manba Finance Limited | 8.34 | 53.26 | 15.66 | 2.26 | Consolidated | |
| Baid Finserv Limited | 1.08 | 13.89 | 13.65 | 7.75 | Consolidated | |
| Arman Financial Services Ltd. | 195 | 775.7 | 8.57 | 21.36 | Consolidated | |
| Mas Financial Services Ltd | 15.31 | 108.71 | 18.13 | 14.25 | Consolidated |
Note: The above comparison of listed peers is as per data by 31 March 2024.
Manba Finance Limited IPO (Manba Finance IPO) Strengths –
Cultivated connections with over 1100 Dealers
The capacity to spread to previously untapped regions (now found in 66 sites across six states in western, central, and northern India)
Availability of a variety of affordable long-term loans
A scalable operational model is driven by technology that offers a fast Turn Around Time (TAT) for loan processing (5.30 days as of March 31, 2024)
Comprehensive infrastructure and procedures that support the upkeep of the asset quality of our company
A skilled management group and seasoned promoters.
Manba Finance Limited IPO (Manba Finance IPO) Weakness –
If the company is not able to keep up its ties with the Dealers, who provide it with a large amount of its business in New Vehicle Loans, then its business and prospects could suffer.
97.90% of the company’s AUM is made up of loans for new cars. Diverse loan offerings could be detrimental to its business’s expansion, future prospects, and financial health.
Any decline in the credit ratings could result in higher borrowing costs, make it more difficult for the company to get financing, and harm its company.
In the previous fiscal years, it had negative cash flows from operating activities, investing, and financing activities. Constant negative cash flows could affect its cash flow needs.
Manba Finance Limited IPO (Manba Finance IPO) Status
Manba Finance Limited IPO (Manba Finance IPO) allotment status will be available on Link Intime India Private Ltd.
Click on Link Link Intime India Private Ltd to get allotment status.
Manba Finance Limited IPO (Manba Finance IPO) GMP Today –
IPO’s last GMP is ₹60, last updated 22nd Sept 2024. With the price band of 120.00, IPO’s estimated listing price is ₹180(cap price + today’s GMP). The expected percentage gain/loss per share is 50.00%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
