Thane based NBFC Company Manba Finance files DRHP with SEBI for the proposed IPO; Key Details here

Manba Finance is into Financial Services NBFC and is looking raise funds through Fresh Issue

Manba FinanceIPO: Fresh Issue of 12,570,000 Equity Shares through public issue IPO

Manba Finance IPO: Manba Finance Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Promoters of Manba Finance are Manish Kiritkumar Shah, Nikita Manish Shah, Monil Manish Shah, Manba Investments and Securities Private Limited, Avalon Advisory and Consultant Services Private Limited, Manba Fincorp Private Limited, Manba Infotech LLP and Manish Kiritkumar Shah (HUF). and holds 100% stake in the company.

Key Details:

• Initial Public Offer comprising of a Fresh Issue of upto 1,25,70,000 Equity Share.
• Hem Securities have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue of up to 12,570,000 Equity Shares.

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Objects of the issue:
1) Augmenting capital base to meet company's future capital requirement towards lending - Rs160 crores (updated on 20-Sep-2024), and 2) General corporate purposes.

About Company:
Established in 1996, Mumbai based Manba Finance is NBFC-BL providing financial solutions to Automobile, Small Business loans and personal loans. Company's financial solutions includes lending to 2Ws, 3Ws, EV2Ws, EV3Ws, Used Cars, Small Business Loans and Personal Loans. Company's AUM size is Rs 8,000 crores (Dec 31, 2023). About 99% of loan portfolio comprises of New Vehicle Loans with an average ticket size (ATS) of around ₹ 0.80 lakhs. Company operates out of 65 Locations connected to 28 branches across five (5) states in western, central and north India and having business relationships with more than 850 Dealers, including more than 60 EV Dealers, across Maharashtra, Gujarat, Rajasthan, Chhattisgarh and Madhya Pradesh.

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About Industry:
CRISIL MI&A expects domestic two-wheeler sales to record a compound annual growth rate (CAGR) of 10-12% from fiscal 2023 to fiscal 2026 post a robust recovery in fiscal 2023. Scooters are expected to witness higher penetration in the rural market (scooters have an urban market share of ~65-75%) which will drive growth. The consumer preference shifting towards higher ‘cc’ scooters (125cc) is also likely to aid demand. Further, CRISIL MI&A expects two-wheeler disbursements to grow at 13-15% CAGR from fiscal 2023 to 2026, driven by recovery in scooter sales with improvement in urban sentiments along with increase in two-wheeler EV penetration and improving rural infrastructure. (Source: CRISIL Report)

Source: SEBI, BSE, NSE, DRHP, Manba Finance, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.