Wed Sep 25 05:01:16 UTC 2024: ## Manba Finance IPO Oversubscribed, Analysts Recommend Subscription
**Mumbai, September 25:** The initial public offering (IPO) of Manba Finance Ltd, a non-banking finance company (NBFC) focused on two-wheeler financing, has been heavily oversubscribed, attracting strong demand from investors. The bidding period for the ₹150.84 crore IPO concluded today.
Manba Finance specializes in loans for new and used two-wheelers, three-wheelers, electric vehicles, and small businesses. As of March 31, 2024, the company’s assets under management (AUM) stood at ₹937 crore.
The IPO, which offered 1.26 crore shares at a price band of ₹114 to ₹120 per share, was subscribed 79.13 times by the end of the bidding period. Retail investors showed strong interest, subscribing 74.97 times their allotted portion, while Non-Institutional Investors (NII) subscribed 188.78 times their portion. Qualified Institutional Buyers (QIB) subscribed 4.17 times.
The strong demand for Manba Finance shares is also reflected in the grey market, where shares are trading at a premium of ₹65 per share, indicating a 54% premium over the issue price.
Analysts have cited the company’s consistent growth, robust performance despite a challenging post-COVID environment, and attractive valuation as reasons for recommending subscription.
“Manba witnessed its GNPA peak out in FY22 at 4.9%, much lower compared to other vehicle financiers,” said Nirmal Bang, adding, “We recommend subscribing to the issue.”
BP Equities also highlighted the company’s focus on customer satisfaction and innovative products, recommending a “SUBSCRIBE” rating with a medium to long-term investment perspective.
The IPO allotment is expected on September 26, and the shares are scheduled to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) on September 30.
The proceeds from the IPO will be used to augment the company’s capital base and meet future capital requirements.
First Piper 