Manba Finance IPO Closes with Overwhelming Demand, GMP Soars

September 25, 2024. Manba Finance Limited’s Initial Public Offering (IPO), which opened on September 23, 2024, concluded today with a staggering subscription rate, showcasing immense investor interest. The IPO, priced in the band of ₹114 to ₹120 per share, aimed to raise ₹150.84 crore through a fresh issue of 12,570,000 shares.

Subscription Highlights:

By the final day of bidding, Manba Finance’s IPO was subscribed over 89 times overall, with the highest subscription rates observed in the Non-Institutional Investors (NII) category, indicating strong backing from both retail and institutional investors.
Retail investors contributed significantly, with the retail portion being subscribed nearly 90 times by mid-day on the last day, showcasing widespread investor enthusiasm across the board.

Grey Market Premium (GMP):

Shares of Manba Finance in the grey market traded at a GMP of up to ₹58, signaling an expectation of a 48.33% listing gain over the IPO price. This reflects the market’s high confidence in Manba Finance’s growth prospects and its valuation.

Market Sentiment:

Social platforms like X buzzed with discussions around Manba Finance’s IPO, with many recommending it for its potential listing gains and the company’s sector positioning in vehicle financing. The subscription figures and GMP indicate a positive sentiment and a robust demand for the company’s shares.

Company Utilization of Funds:

Manba Finance plans to utilize the proceeds from the IPO to augment its capital base, catering to future capital requirements for onward lending and general corporate purposes, aiming to expand its presence and loan portfolio.

Investment Considerations:

Analysts and experts have provided mixed advice, with some recommending subscription due to the company’s growth track record and potential in the vehicle financing sector. However, concerns about elevated NPA levels and the company’s current limited geographical presence temper the enthusiasm, suggesting a medium to long-term investment perspective.

Listing Date and Allotment:

The share allotment for Manba Finance’s IPO is expected to be finalized on September 26, 2024, with shares listed on both BSE and NSE on September 30, 2024.

This IPO’s performance underscores the ongoing investor appetite for well-positioned NBFCs, particularly those with a clear growth strategy in underpenetrated segments like vehicle financing. The high GMP and subscription rates suggest a potentially lucrative listing day, but investors are advised to consider their risk appetite and investment horizon before jumping in.