Mon Sep 23 14:10:49 UTC 2024: ## Manba Finance IPO Opens with Strong Demand, Grey Market Shows Potential Gains

**Mumbai, India** – Manba Finance Ltd, a non-bank financial institution, has opened its initial public offering (IPO) to the public on Monday, September 23, 2024. The IPO, which aims to raise Rs 150.84 crore, has garnered significant interest with a 24.03 times subscription on the first day of bidding.

The IPO’s price band has been set at Rs 114 to Rs 120 per share. Non-institutional investors have shown the most enthusiasm, subscribing 43.29 times the allocated portion, followed by retail individual investors (RIIs) at 28.16 times. Qualified institutional buyers (QIBs) subscribed 2.36 times their allotted share.

The IPO will remain open for subscription until September 25, with share allotment expected on September 26. Manba Finance shares are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 30.

Market observers have noted a strong grey market premium (GMP) for Manba Finance, with unlisted shares currently trading Rs 64 higher than the issue price. This indicates an anticipated listing gain of 53.33 per cent, suggesting a positive sentiment among investors.

Analysts have largely given positive recommendations for the IPO. Nirmal Bang Securities highlighted Manba’s strong performance despite a challenging post-COVID environment, while Swastika Investment recommended a cautious approach due to the company’s size and potential risks. StoxBox and SMIFS both recommended subscription, citing Manba’s strategic focus, growth opportunities, and fair valuation.

Manba Finance, based in Maharashtra, specializes in auto loans, used car financing, small business loans, and personal loans. The company currently operates across 66 locations in six states. Its Assets Under Management (AUM) grew significantly, reaching Rs 936.85 crore in FY24, and profits surged by 89.5 per cent to Rs 31.41 crore in the same period.

The proceeds from the IPO will be utilized to strengthen Manba’s capital base, supporting future lending activities and general corporate purposes.

**Investors are advised to conduct thorough research and seek professional advice before making any investment decisions.**

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