Manba Finance Limited IPO: 8 Factors to Consider Before Applying

The Manba Finance Limited IPO is an exciting opportunity for investors to participate in a well-established player in the NBFC sector. With a focus on financing two-wheelers, used cars, and small businesses, the company is poised for growth in an expanding market.

Here’s what you should know before investing in the Manba Finance IPO:

1. Proven Market Leader in Vehicle Financing

Manba Finance has built a robust portfolio primarily focused on two-wheeler and used vehicle financing, which are high-demand sectors. This niche market has demonstrated steady growth over the years, positioning the company for strong future returns.

2. Diverse Product Offering

In addition to vehicle financing, the company offers small business loans, catering to an underserved segment. This diversification minimizes risk and enables Manba Finance to capture a broader customer base, making it an attractive prospect for investors.

3. Consistent Financial Growth

Over the years, Manba Finance has shown consistent growth in its financials, which is a key indicator of its sustainability. With healthy revenue and profitability figures, the company has weathered market volatility, showcasing its resilience.

4. Strategic Focus on Tier-II and Tier-III Cities

Manba Finance operates in Tier-II and Tier-III cities, where demand for financing solutions is on the rise. This strategic positioning allows the company to tap into high-potential, underserved markets, fueling its growth trajectory.

5. Strong Promoter Backing

The company has experienced and reputable promoters who bring decades of industry experience. Their strategic leadership and deep understanding of the NBFC market add further credibility to the IPO.

6. Favorable Industry Outlook

With the growing demand for vehicles and small businesses looking for affordable credit solutions, the NBFC sector is expected to grow substantially. Manba Finance is well-positioned to benefit from this industry tailwind.

7. Healthy Capital Base Post IPO

The fresh issue of shares in this IPO will strengthen Manba Finance’s capital base, enhancing its ability to extend loans and support future growth. The improved capital structure is expected to reduce borrowing costs and enhance profitability.

8. Anchor Investor Participation

Manba Finance has already secured ?45.25 crore from anchor investors, reflecting confidence in the company’s business model and future prospects. Anchor investor participation provides credibility and stability to the IPO.

About Manba Finance Limited

Founded in 1998, Manba Finance Limited is a prominent non-banking finance company (NBFC-BL) specializing in financial solutions for two-wheeler, used vehicle, and small business segments. The company caters to Tier-II and Tier-III cities, tapping into growing demand in these regions. Its diversified lending portfolio and strong presence in the market have made it a trusted name in vehicle and business financing. With nearly three decades of experience, the company has consistently delivered on its mission to support financial inclusion in underserved markets.

Key Details of the IPO

- IPO Date: September 23, 2024, to September 25, 2024

- Price Band: ?114 to ?120 per share

- Face Value: ?10 per share

- Lot Size: 125 shares

- Total Issue Size: 12,570,000 shares (aggregating up to ?150.84 crores)

Financials of Manba Finance Limited

Manba Finance has consistently demonstrated financial growth over the years.

- Assets: ?973.75 crore

- Revenue: ?191.63 crore

- Profit After Tax: ?31.42 crore

- Net Worth: ?200.61 crore

Objectives of the IPO

The primary objective of the Manba Finance Limited IPO is to utilize the Net Proceeds towards augmenting the capital base to meet the Company’s future capital requirements.

Conclusion

Manba Finance Limited’s upcoming IPO presents a strong investment opportunity, especially for those looking to benefit from the growing demand for vehicle and small business financing. Its solid track record, strong promoter backing, and strategic market positioning make it a compelling choice for investors. With the IPO listing on major exchanges soon, this is a chance to be part of a growing financial player.