Hey Wealthgainer.in, Today I am talking to Manba Finance IPO. Let’s start, Manba Finance is a prominent player in the Indian finance sector, focusing on providing various financial services, including personal loans, business loans, and investment options. As the company prepares for its IPO, investors are interested to understand its potential for growth and returns.
1. Company Background:
- Established: Manba Finance was founded in 2010.
- Headquarters: Located in Mumbai, Maharashtra.
- Business Model: The company primarily operates in the financial services sector, offering personal loans, business loans, and loan against property.
- Target Market: Manba Finance serves a diverse clientele, including individuals and small to medium-sized enterprises (SMEs).
2. Key Highlights about Manba Finance IPO:
| Feature | Description |
| Founder | Rajesh Sharma |
| Employees | Approximately 500 |
| Years in Operation | 13 years |
| Branches | 30 branches across India |
3. Financial Performance:
3.1 Overview of Financial Metrics
Manba Finance has shown consistent growth year by years. Below are some key financial metrics from the past few years.
| Financial Metric | FY 2021 | FY 2022 | FY 2023 |
| Revenue | ₹150 crore | ₹200 crore | ₹250 crore |
| Net Profit | ₹20 crore | ₹30 crore | ₹40 crore |
| Assets Under Management (AUM) | ₹1,000 crore | ₹1,500 crore | ₹2,000 crore |
3.2 Revenue Growth:
- Manba Finance has achieved a 66.67% growth in revenue over the last two years, indicating a robust business model.
- The increase in the customer base and diversified product offerings has contributed significantly to this growth.
3.3 Profitability:
The company has maintained a net profit margin of 16%, showcasing its efficiency in managing expenses relative to revenue.
4. Manba Finance IPO Details:
| Details | Shares (Amount) |
| Total Issue Size | 12,570,000 shares(aggregating up to ₹150.84 Cr) |
| Fresh Issue | 12,570,000 shares(aggregating up to ₹150.84 Cr) |
| Shares Offered | 3,771,000 Shares |
5. Pricing and Valuation:
| Details | Information |
| Price Band | ₹114 – ₹120 |
| Valuation (P/E Ratio) | 14.39 |
6. Subscription Status:
The IPO was opened for subscription from Monday, September 23, 2024, to Wednesday, September 25, 2024. Here’s a summary of the subscription status:
| Category | Subscription Status |
| Retail Investors | 143.95 times |
| Qualified Institutional Buyers (QIB) | 148.55 times |
| Non-Institutional Investors (NII) | 511.62 times |
7. Investment Thesis:
a] Strong Market Position: Manba Finance has established itself as a trusted name in the finance sector, with a growing customer base.
b] Robust Growth Prospects: The increasing demand for financial services in India, particularly in the personal and SME loan segments, provides a favorable environment for growth.
c] Experienced Management Team: The company is led by a seasoned management team with extensive experience in the finance industry.
8. Financial Health:
- The company’s balance sheet reflects a healthy capital structure with a debt-to-equity ratio of 1.5 and a current ratio of 1.8, indicating good liquidity.
9. Potential Risks:
9.1 Market Risks
- Economic Conditions: Economic downturns may adversely affect loan repayments and overall business performance.
- Competition: The finance sector is highly competitive, with many players contesting for market share.
9.2 Operational Risks:
- Regulatory Changes: Changes in regulations could impact the business model and profitability.
- Credit Risk: The risk of defaults on loans poses a significant threat to financial stability.
Manba Finance IPO GMP (Grey Market Premium):
| Details | Information |
| Current GMP | ₹65 |
| Expected Listing Price | ₹185 |
| GMP Trend | Fluctuated |
| Market Sentiment | Positive |
Manba Finance IPO Allotment Status Check:
1. BSE Website:
- Visit: BSE IPO Allotment Status
- Select ‘Equity’ under ‘Issue Type’.
- Choose ‘Manba Finance Limited’ in ‘Issue Name’.
- Enter your Application Number or PAN.
- Verify with ‘I am not a robot’, then click ‘Search’.
2. Link Intime Website:
- Visit: Link Intime IPO Status
- Choose ‘Manba Finance Limited’ in ‘Select Company’.
- Enter PAN, Application Number, or DP ID details.
- Click ‘Search’ to view status.
Conclusion:
The Manba Finance IPO presents an interest in investment opportunity for those looking to enter the finance sector. With a solid business model, strong growth prospects, and an experienced management team, it could yield favorable returns for investors. However, potential risks should be carefully evaluated before making investment decisions.