Mr. Manish Kiritkumar Shah, Managing Director, Manba Finance Limited at their IPO announcement held in Mumbai
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Price Band of ₹114/– ₹120/- per Equity Share bearing face value of ₹10/- each (“Equity Shares”)
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Bid/Offer Opening Date – Monday, September 23, 2024 and Bid/Offer Closing Date – Wednesday, September 25, 2024.
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Minimum Bid Lot is 125 Equity Shares and in multiples of 125 Equity Shares thereafter.
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The Floor Price is 11.4 times the face value of the Equity Share and the Cap Price is 12.0 times the face value of the Equity Share.
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 share 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%.
Manba Finance’s Assets Under Management (AUM) increased from Rs 495.83 crore in fiscal 2022 to Rs 936.86 crore in fiscal 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 191.59 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.
DISCLAIMERS: MANBA FINANCE LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its Equity Shares and has filed the red herring prospectus dated September 16, 2024 filed with the RoC (“RHP” or “Red Herring Prospectus”) with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the BRLM i.e. the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com Hem Securities Limited at www.hemsecurities.com and the website of the Company at www.manbafinance.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” on page 34 of the RHP. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision and instead should place reliance on the RHP. The Equity Shares offered in the Issue have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws in the United States. Accordingly, the Equity Shares are being offered and sold only outside the United States in “offshore transactions”, as defined in, and in compliance with, Regulation S and the applicable laws of the jurisdiction where those offers and sales are made
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Issue or the specified securities stated in the Offer Document. The investors are advised to refer to page 399 of the RHP for the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Red Herring Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Red Herring Prospectus. The investors are advised to refer to the Red Herring Prospectus for the full text of the Disclaimer clause of the BSE Limited.
DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the ‘Disclaimer Clause of NSE’.
