Manba Finance files draft papers with SEBI for an IPO

  • Manba Finance Ltd files DRHP for IPO with SEBI, offering financial solutions for various loans. IPO consists of fresh issue of up to 1.26 crore equity shares at face value of 10 each. Proceeds to be used for expanding capital base to meet future lending needs and general business objectives.

Dhanya Nagasundaram
Published14 Mar 2024, 03:08 PM IST
Manba Finance Ltd files papers with SEBI for IPO.
Manba Finance Ltd files papers with SEBI for IPO.(https://www.manbafinance.com/)

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. 

Also Read: Shivalic Power Control files DRHP for IPO with NSE Emerge

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.

Also Read: Chatha Foods IPO: Price band, issue size, key details to know

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.

Also Read: Pratham EPC IPO allotment to be finalised today; latest GMP, 6 steps to check status

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.

Also Read: Popular Vehicles and Services IPO: Issue subscribed 87% on day 3 so far, QIB portion fully booked; check GMP

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First Published:14 Mar 2024, 03:08 PM IST
Business NewsMarketsIPOManba Finance files draft papers with SEBI for an IPO

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