Manba Finance Raises ₹45.25 Crore from Institutional Investors Ahead of IPO

Manba Finance, a prominent non-banking finance company (NBFC), has successfully raised ₹45.25 crore from eight institutional investors through its anchor book ahead of its much-anticipated Initial Public Offering (IPO). The anchor round was completed on September 20, 2024, setting the stage for the public issue, which is now open for applications and will close on September 25, 2024.

IPO Structure and Fundraising Goals

The company aims to raise a total of ₹150.84 crore through the IPO by issuing 1.25 crore fresh equity shares. Notably, the entire IPO consists of fresh issues of shares, with no offer-for-sale component. This move is expected to bolster Manba Finance’s capital base, providing the company with additional resources to meet its future funding requirements.

Anchor Book Investors

Chartered Finance & Leasing emerged as the largest institutional investor in the anchor round, purchasing 8.33 million shares, amounting to a ₹10 crore investment. In addition to Chartered Finance, seven other institutional investors participated in the anchor book, each purchasing 4.2 million shares. These investors included:

• Finavenue Capital Trust
• Antara India Evergreen Fund
• Belgrave Investment Fund
• Meru Investment Fund
• NAV Capital VCC
• Rajasthan Global Securities
• Vikas India EIF I Fund

Manba Finance, in a filing to the exchange, confirmed that it had allotted a total of 37.71 million shares to these anchor investors at a price of ₹120 per share.

Price Band and IPO Timeline

The price band for Manba Finance’s IPO has been set between ₹114 to ₹120 per share, with the public issue scheduled to conclude on September 25, 2024. The proceeds from the IPO will primarily be used to increase the company’s capital base, positioning it for future growth and expansion.

Business Overview and Financial Performance

Manba Finance, headquartered in Maharashtra, has established itself as one of the leading players in the financing market for two and three-wheelers. The company also provides loans for used cars, small businesses, and personal loans. As of March 2024, Manba Finance’s assets under management (AUM) have surpassed ₹9,000 crore, reflecting its significant growth in the financial services sector.

The company has reported impressive financial results for the fiscal year 2024. Manba Finance recorded a net profit of ₹31.42 crore, marking a substantial increase from ₹16.58 crore in the previous fiscal year. Additionally, its operating income surged to ₹191.6 crore, compared to ₹133.31 crore during the same period last year. These figures highlight the company’s robust financial performance and its growing presence in the NBFC sector.

IPO Management

The IPO is being managed by Hem Securities, the sole commercial bank overseeing the public offering. The successful completion of the IPO will enable Manba Finance to strengthen its balance sheet and continue to expand its loan offerings, particularly in the growing two and three-wheeler financing market.

Manba Finance’s entry into the public markets is seen as a strategic move to capitalize on its strong market position and drive further growth in its core business areas.