Mon Sep 23 08:10:47 UTC 2024: ## Manba Finance IPO Opens to Strong Demand, Analysts Give Mixed Signals

**Mumbai, India -** Non-bank financial institution Manba Finance Ltd saw its initial public offering (IPO) open for public subscription on Monday, attracting strong initial demand. By 10:43 am, the IPO had received bids for 2,53,47,125 shares, exceeding the offering of 87,99,000 shares by a factor of 2.88.

The IPO, valued at Rs 150.84 crore, has a price band of Rs 114 to Rs 120 per share. Non-institutional investors showed particularly strong interest, with their portion of the IPO being subscribed 4.44 times, while retail individual investors (RIIs) subscribed 3.86 times.

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

The IPO has generated significant buzz in the market, with unlisted shares of Manba Finance trading at a Rs 60 grey market premium (GMP), indicating investor anticipation of a strong listing gain.

**Analysts Offer Divergent Views**

Despite the strong initial demand, analyst opinions on the IPO are mixed.

Nirmal Bang Securities recommends a ‘subscribe’ rating, highlighting Manba’s impressive performance despite challenging market conditions. The brokerage highlights the company’s strong growth in assets under management (AUM) and attractive valuation.

However, Swastika Investment has a more cautious stance, recommending a ‘subscribe with caution’ rating. While acknowledging the company’s robust growth, the brokerage believes the IPO is fully priced and advises investors with a high-risk tolerance to consider participating.

StoxBox also recommends a ‘subscribe’ rating, emphasizing the company’s strategic focus and fair valuation.

SMIFS, while recognizing the company’s growth potential, advises investors with a medium risk appetite to subscribe for long-term investment due to Manba’s limited presence and elevated non-performing asset levels.

**Company Highlights**

Manba Finance specializes in financial solutions for auto loans, used cars, small business loans, and personal loans. The company operates across 66 locations in six states and has seen significant AUM growth, reaching Rs 936.85 crore in FY24.

The company’s profit surged 89.5% in FY24, reaching Rs 31.41 crore, driven by a 44% increase in revenue.

Proceeds from the IPO will be utilized to augment capital for onward lending and general corporate purposes.

Investors can bid for a minimum of 125 equity shares and in multiples of 125 equity shares thereafter.

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