Manba Finance IPO: Review, valuation, Date & GMP

Manba Finance IPO-Complete Overview

Manba Finance IPO a Mainboard IPO is a book-built issue of Rs.150.84 crore (1.26 crore Shares) by Manba Finance Ltd. which was established in 1998. It is a non-banking financing company (NBFC-BL) providing loans for small businesses, personal loans, used automobiles, electric two-wheelers (EV2Ws), electric three-wheelers (EV3Ws), and new two-wheelers (2Ws, 3Ws).

The primary target markets for the company are (i) workers and (ii) independent contractors. The company develops tailored programs and adjusts its services to suit each of these customer categories. Usually, the company will finance up to 85% of the vehicle's purchase price (on-road price) and ask the buyer to pay the remaining amount.

The company serves the nearby rural areas through branches in urban, semi-urban, and metropolitan cities and towns. More than 1,100 dealers, including more than 190 EV dealers in Maharashtra, Gujarat, Rajasthan, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh have developed ties with the company.

This new IPO is to be launched on 23 September 2024, and the initial public offering of this upcoming IPO will end on 25 September 2024.

Manba Finance IPO Overview

The Rs.150.84 crore Manba Finance Limited IPO comprises an entirely fresh Issue of 1.26 crore Shares out of which 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional investors. 

The Manba Finance IPO date is from 23 September to September 25, 2024. The Manba Finance IPO listing date is on Monday, September 30, 2024, and it will be listed on the BSE and NSE. Manba Finance IPO price band is between Rs.114 to Rs.120 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The Manba Finance Limited’s revenue grew by 44% and PAT increased by 90% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in lac)

 

Bifurcation of Loan Given During Last Three FYs

(Values in lac)

 

Product-wise revenue Bifurcation During the Last Three FYs

(Values in lac)

 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill its future capital needs, the company plans to increase its capital base with the Net Proceeds.

Peers of Manba Finance Ltd.

 

Note: The basic EPS of the peers is for the financial year ending 31 March 2024.

The peers' P/E Ratio is computed based on the closing market price of the Share as of 22 August 2024.

 

Evaluation

Manba Finance IPO price is between Rs.114 to Rs.120 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.8.34 from the last year, the resulting P/E ratio is 14.38x.

Considering the weighted EPS of Rs.6.07 for the last three years, the P/E ratio is 19.77x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 13.45x.

 

In simple words, the P/E ratio of Manba Finance IPO (14.38x), compared with the industry’s average P/E of 13.45x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Cultivated connections with over 1100 Dealers

• The capacity to spread to previously untapped regions (now found in 66 sites across six states in western, central, and northern India)

• Availability of a variety of affordable long-term loans

• A scalable operational model is driven by technology that offers a fast Turn Around Time (TAT) for loan processing (5.30 days as of March 31, 2024)

• Comprehensive infrastructure and procedures that support the upkeep of the asset quality of our company

• A skilled management group and seasoned promoters.

 

IPO’s Weaknesses 

• If the company is not able to keep up its ties with the Dealers, who provide it with a large amount of its business in New Vehicle Loans, then its business and prospects could suffer.

• 97.90% of the company’s AUM is made up of loans for new cars. Diverse loan offerings could be detrimental to its business's expansion, future prospects, and financial health.

• Any decline in the credit ratings could result in higher borrowing costs, make it more difficult for the company to get financing, and harm its company.

• In the previous fiscal years, it had negative cash flows from operating activities, investing, and financing activities. Constant negative cash flows could affect its cash flow needs.

 

Manba Finance IPO GMP Today

Manba Finance IPO GMP today has not started yet as of 18 September 2024. So detailed info about the gain/loss percent of Manba finance GMP is not available.

Manba Finance IPO Timetable (Tentative)

The Manba IPO open date is from September 23 to September 25, 2024, with IPO allotment on September 26, 2024, refund initiation on September 26, 2024, and listing on Monday, September 30, 2024.

 

Manba Finance IPO Details 

The IPO with a face value of Rs.10 per Share is set to start on September 23, 2024, close on September 25, 2024, and offers a total issue size of 12,570,000 Shares between Rs.114 to Rs.120 per Share with a Lot size of 125 Shares and will be listed at BSE and NSE.

Manba Finance IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (125 Shares) amounting to Rs.15,000 and 13 Lots (1625 Shares) amounting to Rs.1,95,000 respectively, while for HNI investors, the minimum Lot is 14 (1750 Shares) amounting to Rs.2,10,000.

Manba Finance IPO Reservation

Promoters and Management of Manba Finance Ltd. 

• Manba Investments and Securities Private Limited

• Avalon Advisory and Consultant Services Private Limited

• Manba Fincorp Private Limited

• Manba Infotech LLP

• Manish Kiritkumar Shah (HUF).

 

Manba Finance IPO Lead Managers

• Hem Securities Limited.

 

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

Over the past few fiscal years, the company's financing, investment, and operating operations have resulted in negative cash flow. The company is currently holding an IPO for the public to achieve its goals.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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