Manba Finance Ltd, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to for an Initial Public Offering (IPO).
According to the DRHP, Manba Finance is an NBFC-BL that offers financial solutions for new Two-wheeler (2W), Three-wheeler (3W), EV2Ws, EV3Ws, used cars, small business loans, and personal loans.
With a face value of ₹10 for each equity share, the Manba Finance IPO is a completely fresh issue of up to 1.26 crore equity shares that does not include an offer of sale (OFS) component.
The proceeds from the fresh offering will be allocated to broadening the capital base in order to cover the company's future capital needs for further lending and general business objectives.
Of the issue, not less than 15% will be made available to non-institutional investors, not less than 35% will be made available to retail individual bidders, and not more than 50% will be made available for proportionate allocation to qualified institutional buyers.
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The only book running lead manager of the issue is Hem Securities Limited, while the registrar is Link Intime India Private Limited.
New vehicle loan make up the bulk of Manba Finance's loan portfolio—roughly 99%—and have an average ticket size of about ₹0.80 lakhs. Its area of expertise is offering financial solutions with rapid loan approval and payout turnaround times. Throughout its operating states, the firm has built strong partnerships with over 850 dealers, including over 60 EV dealers.
Based on consumer credit information, a centralised credit team at Manba Finance remotely evaluates loan applications and renders credit judgements. Based on many parameters such the borrower's cash flows, credit score, and collateral, more than 85% of loans are approved on the same day as the application. Recovering monthly payments from clients is the primary responsibility of an internal collection team.
Assets Under Management (AUM) at Manba Finance expanded at a compound annual growth rate (CAGR) of 13.89%, from ₹530.11 crore in fiscal year 2021 to ₹733.73 crore at the end of the six-month period ending September 30, 2023. The company largely ascribed this growth to volume increases, sustained returns, and continuous average ticket size.
Revenue from operations was ₹88.29 crore, and profit after tax was ₹16.80 crore for the six months that ended on September 30, 2023.
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