Manba Finance share locks in 5% upper circuit after strong market debut

Manba Finance shares listed at Rs 150 on the BSE and Rs 145 on the NSE, against the IPO issue price of Rs 120

Manba Finance IPO listing: Manba Finance shares continued their northward trajectory post-listing, jumping 5 per cent to hit the upper circuit of Rs 157.45 on the BSE, and Rs 152.25 on the NSE within less than half an hour of their market debut on Monday. Nearly 48.40 lakh equity shares of Manba Finance, worth around Rs 72.14 crore, changed hands on the NSE and BSE combined on Monday.

Earlier today, shares of Manba Finance made a decent debut on the bourses despite weak market sentiments. Manba Finance shares listed at Rs 150 on the BSE, reflecting a 25 per cent premium over the IPO issue price of Rs 120. On the NSE, Manba Finance shares listed at a premium of 20.83 per cent at Rs 145. 

With this listing, the investors who were allotted the company’s shares in the IPO made a profit of around Rs 30 or 25 per cent apiece. The listing fell marginally short of grey market trends, as the unlisted shares of Manba Finance were trading at a premium of Rs 23, which translates into a GMP of 27.5 per cent from the IPO issue price of Rs 120 on Monday. 

Shivani Nyati, Head of Wealth at Swastika Investmart, stated that Manba Finance's strong listing reflects its robust growth, positive financial metrics, and overwhelming investor response. While acknowledging the commendable listing gain, Nyati advised investors to remain cautious, citing the IPO's full pricing and the company's operation in a competitive market with inherent risks. However, Manba Finance's focus on niche segments positions it for potential growth.

Nyati recommended that existing investors hold their shares with a stop-loss at around Rs 130, closely monitoring the company's performance and market conditions.
 

Manba Finance IPO details

The public issue of Manba Finance comprised an entire fresh issue of 12,570,000 shares. The Manba Finance IPO, which closed for public subscription on Wednesday, September 25, 2024, garnered favourable interest from investors, receiving an oversubscription of 224.10 times. This was driven by Non-Institutional Investors (NIIs), who bid for a whopping 511.65 times, followed by Qualified Institutional Buyers (QIBs) who bid for 148.55 times, and Retail Individual Investors (RIIs) who bid for 144.03 times, as per data available on the NSE.Manba Finance's IPO was available with a price band of Rs 114-120 and a lot size of 125 shares.

Hem Securities was the sole book-running lead manager for the Manba Finance IPO, while Link Intime India was the registrar for the issue. 

Manba Finance said it raised Rs 45.25 crore from anchor investors on the bidding concluded on September 20, 2024.Manba Finance intends to utilise the net proceeds from the IPO towards augmenting the capital base to meet the company’s future capital requirements.

About Manba Finance

Manba Finance Ltd (MFL), headquartered in Mumbai, is a Non-Banking Financial Company that offers financial solutions for new two-wheelers, three-wheelers, electric vehicles, used cars, small business loans, and personal loans. As of March 31, 2024, MFL reported Assets Under Management (AUM) exceeding Rs 900 crore, with 97.9 per cent of its loan portfolio focused on new vehicle loans.