Sun Sep 22 14:12:09 UTC 2024: ## Manba Finance IPO to Hit Market on September 23rd, Seeking ₹150.84 Crore

**Mumbai, India:** Non-Banking Financial Company (NBFC) Manba Finance Limited is set to launch its initial public offering (IPO) on September 23rd, 2024, with the bidding period closing on September 25th. The company aims to raise ₹150.84 crore through the issuance of fresh shares, with the IPO price band fixed between ₹114 and ₹120 per equity share.

Market observers have reported that Manba Finance shares are already trading at a premium of ₹60 in the grey market, indicating strong early investor interest. However, analysts remain cautious, citing concerns about the company’s financial health.

“With a heavy focus on vehicle loans, particularly two-wheelers, which make up 60% of its portfolio and 90% of its revenue, Manba Finance boasts an impressive average yield of 21% annually,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities. “However, such high returns appear unsustainable in the long term.”

Jain further pointed out weaknesses in the company’s underwriting capabilities, coupled with a “glaring weakness” in its recent financial performance. “While the company’s AUM grew 48% in FY24, this was spurred by a one-time gain from asset recovery, masking underlying financial weaknesses,” he stated.

The analyst also highlighted Manba Finance’s credit rating of BBB+ and its expensive valuation at 1.7x post-money book value, suggesting that the risks associated with the investment outweigh potential gains.

The Manba Finance IPO will be managed by Hem Securities Limited, with Link Intime India Private Limited serving as the official registrar. The IPO is proposed for listing on both BSE and NSE, with the most likely listing date being September 30th, 2024.

**Disclaimer:** This news article is based on publicly available information. Investors are advised to consult with certified financial experts before making any investment decisions.

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