MANBA FINANCE IPO – 10 Key Factors to Consider Before Investing in the Manba Finance IPO.

1. Manba Finance IPO – Company Overview

Manba Finance (Manba Finance IPO) is a Non-Banking Financial Company – Base Layer (NBFC-BL) regulated by the Reserve Bank of India (RBI). Manba Finance Limited provides comprehensive financial solutions tailored to meet the diverse needs of our customers.

Products Portfolio – Loan Products:

Manba Finance (Manba Finance IPO) offers a variety of vehicles and loans, such as:

• New Two-Wheelers (2Ws)
• Three-Wheelers (3Ws)
• Electric Two-Wheelers (EV2Ws)
• Electric Three-Wheelers (EV3Ws)
• Used Cars
• Small Business Loans
• Personal Loans

As of March 31, 2024, Manba Finance Limited have achieved an impressive Assets Under Management (AUM) size of over ₹900 Crore.

Loan Portfolio Highlights:

A significant portion of the loan portfolio—about 97.90%—is dedicated to new vehicle loans. Average ticket sizes are designed to cater to customers’ needs:

Two-wheeler loans, – the average ticket size is around ₹80,000.

Three-wheeler loans,-the average ticket size is approximately ₹140,000.

Locations:

Headquarter – Mumbai, Maharashtra,

Manba Finance Limited operates from 66 locations connected to 29 branches across 6 states in western, central, and northern India.

Dealer Relationships:

Manba Finance Limited have built strong relationships with over 1,100 dealers, including more than 190 EV dealers. This network not only enhances our service delivery but also supports our commitment to promoting sustainable transportation solutions.

Associates / Subsidiaries:

As of the date of the red herring prospectus, Manba Finance Limited do not have any subsidiaries, associates, or holding companies.

2. Manba Finance IPO – Company History

Incorporation: Manba Finance Limited Originally incorporated as Manba Finance Private Limited on May 31, 1996, in Mumbai, Maharashtra, under the Companies Act, 1956.

Conversion to Public Company: On January 31, 2005 Manba Finance Private Limited Converted to a public limited company, following a special resolution by shareholders. The name was changed to Manba Finance Limited, with effect from from April 11, 2005.

NBFC Certificate: Received a certificate of registration from the Reserve Bank of India (RBI) on April 7, 1998, to operate as a Non-Banking Financial Company (NBFC) under Section 45-IA of the RBI Act, 1934. A revised certificate was granted on January 27, 2022, allowing the company to conduct business without accepting public deposits.

3. Manba Finance IPO – IPO Details

Manba Finance IPO issue is being made through the Book Building Process of ₹150.84 Crore.

The Manba Finance Limited IPO issue comprises of fresh issue of up to 12,570,000 Equity Shares for at the price band set at ₹ 114 – ₹120 per share.

The Manba Finance Limited IPO comprises a Fresh Issue of up to 12,570,000 Equity Shares, aggregating up to ₹150.84 Crores by the Company. The Manba Finance Limited proposes to utilize the Net Proceeds from the IPO Issue towards augmenting capital base to meet Company’s future capital requirements.

The Manba Finance Limited to utilize the proposed Net Proceeds (Gross proceeds – Issue expenses) from the IPO issue towards augmenting our capital base to meet Company’s future capital requirements after deducting issue expense would be around ₹138.77Crore.

Manba Finance Limited IPO issue opens on 23 September 2024 and closes on 25 September 25.

4. Manba Finance IPO – Issue/Bid Dates, Issue Size, Pre and Post-IPO issue shareholding

Sr.No.	Particulars	Date/Amount/Number
1	IPO Bid / Issue period	Open – 23 September 2024 Close – 25 September 2024
2	IPO Listing Date	30 September 2024
3	IPO Shares Allotment	26 September 2024
4	IPO Issue Type	Book Built Issue IPO
5	IPO Issue size – Shares	12,570,000 Shares (Fresh issue)
6	IPO Issue Price band	₹114 – 120 per share
7	IPO Issue Size ₹	150.84 Crores (1,25,70,000*120)
8	IPO Lot size	125 Shares (₹15,000/120)
9	IPO Face value of Equity share	₹10 per share
10	Shareholding pre IPO issue *	37,669,410
11	Fresh IPO issue	12,570,000
12	Total Shareholding Post IPO issue	50,239,410

Manba Finance Limited IPO – Pre IPO issue shareholding *

Manba Finance IPO has outstanding shares of 37,669,410 before IPO issue. The below table shows breakdown of 37,669,410 shares.

Sr.No.	Name of the shareholder	Number of Equity Shares held	Percentage of the pre-Issue paid-up Equity Share capital (%)
1	Manish Kiritkumar Shah	6,559,848	17.41
2	Nikita Manish Shah	5,004,270	13.29
3	Manish Kiritkumar Shah (HUF)	2,214,846	5.88
4	Monil Manish Shah	1,794,549	4.76
5	Manba Investments and Securities Private Limited	13,906,038	36.92
6	Avalon Advisory and Consultant Services Private Limited	2,495,700	6.63
7	Manba Fincorp Private Limited	2,087,706	5.54
8	Manba Infotech LLP	3,601,053	9.56
9	Mansi Hardik Shah (alias Mansi Manish Shah)	5,400	0.01
		37,669,410	100

5. Manba Fiannce IPO – IPO Reservation

Manba Finance IPO issue comprises fresh issue of 12,570,000 shares. Qualified Institutional Buyers (QIBs) were allocated 6,285,000 shares, which accounts for 50% of the total issue size. Non-Institutional Investors (NIIs) allocated 1,885,500 shares, representing 15% of the issue size. Additionally, retail investors were allocated 4,399,500 shares, which represents to 35% of the overall issue.

Sr.No.	Investor	Reservation %	Maximun numbers of shares allotted.
1	QIB	50	62,85,000
2	NII	15	18,85,500
3	Retailes	35	4,399,500
		100	12,570,000

6. Manba Finance IPO – Financial Highlights (Values are restated for IPO issue)

Revenue of Manba Finance IPO for the period 2022-23, increased by approximately 25% (from ₹106.62 to ₹133.32), for 2023-24 revenue grew by about 43.50% (from ₹133.32 to ₹191.63) and overall from 2022 to 2024, revenue has increased by approximately 79.50%

PAT Growth of Manba Finance IPO for the period 2022-23 increased by about 70.30% (from ₹9.74 to ₹16.58), for 2023-24 rose by approximately 89.60% (from ₹16.58 to ₹31.42) and Overall, from 2022 to 2024, PAT has grown by around 222.50%.

Sr.No.	Particulars	31 March 2024	31 March 2023	31 March 2022
1	Revenue (₹ in Crore)	191.63	133.32	106.62
2	Profit After Tax (PAT) (₹ in Crore)	31.42	16.58	9.74
3	Earnings Per Share (EPS)
	Basis EPS	8.34	4.40	2.59
	Diluted EPS	8.34	4.40	2.59
4	Equity / Net worth  (₹ in Crore)	200.61	168.43	151.74
5	Reserve and Surplus (₹ in Crore)	162.94	155.87	139.19
6	Total Assets (₹ in Crore)	973.75	787.25	561.46
7	Total Borrowings (₹ in Crore)	752.27	595.93	394.40
8	AUM (₹ in Crore)	936.86	633.39	495.83
9	Net Asset Value Per Share	53.26	44.71	40.28
10	ROE %	17.03	10.36	6.63
	Asset Quality
11	Gross NPA %	3.95	3.74	4.94
12	Net NPA %	3.16	3.14	4.30

7. Manba Finance IPO – Strategic Management Team

Manish Kiritkumar Shah

• Managing Director of our Company. He is a director of the Company since incorporation.

• Holds a bachelor’s degree in commerce from Mumbai University.

• Over twenty-five (25) years of experience in the NBFC sector. He is a strategic leader in our Company and oversees functions such as identifying growth opportunities, building and maintaining relationships with key stakeholders and implementing technology solutions to streamline operations in our Company.

Nikita Manish Shah

• Whole Time Director and Head – Business Development of the Company.

• Director of the Company since incorporation.

• Higher secondary examination in the field of commerce.

• Over twenty seven (27) years of experience in the field of business relationship, marketing and strategy management.

• Oversees functions such as marketing, strategy management and corporate social responsibility activities in our Company.

Monil Manish Shah

• Whole Time Director and Chief Business Officer of the Company.

• Director in the Company since 2017.

• Holds a master’s degree in marketing from Queen Mary University of London.

• Actively involved in the business of our Company and oversees functions such as sales & strategy, marketing and business expansion.

• Played a pivotal role in formulating and executing our Company’s overall business strategy to drive growth and profitability.

Jay Khushal Mota

• Whole Time Director and Chief Financial Officer of the Company.

• Associated with our Company since 2006.

• Holds a bachelor’s degree in commerce from Mumbai University.

• Over eighteen (18) years of experience in the field of accounts, finance and taxation.

• Oversees various facets of accounts & finance function in our Company including financial planning and analysis, treasury management, budgeting, financial projections and audit & taxation.

Anshu Shrivastava

• Previously associated with Piramal Group and Pioneer Investcorp Limited.

• Chairman and Independent Director of the Company since 2015.

• Member of the Institute of Chartered Accountants of India and also holds a bachelor’s degree in commerce from Mumbai University.

• Over twenty (20) years of experience in the field of finance.

Abhinav Sharma

• More than 16 years of experience in the financial sector.

• Independent Director of the Company since 2019.

• He is a chartered financial analyst and also holds a master’s degree in business administration from ICFAI University, Dehradun.

Neelam Tater

• Independent Director of the Company.

• Member of the Institute of Chartered Accountants of India.

• Professional experience of six (6) years encompassing audit and risk management and business/management advisory services to diverse mix of corporate clients including banking and financial institutions. She is associated with Evolutionary Systems Private Limited.

8. Manba Finance IPO – Underwriters and Registrar

Manba Finance Limited, an IPO issuer appointed Hem Securities Limited. as Book Running Lead Manager (BRML) and Link Intime India Private Limited as registrar of the IPO issue.

9. Manba Finanace IPO and Peer Comparison

Below is the table of comparison of our company with the listed industry peers, as on March 31, 2024

10. Manaba Finance IPO – Risks Factors

There are numerous internal and external risk factor could affet the companies business, below are the few risk factors. For more details please refer Red herring Prospectus at https://www.sebi.gov.in/filings/public-issues/sep-2024/manba-finance-limited-rhp_86780.html

• Maintaining strong dealer relationships is crucial for our New Vehicle Loans business.
• New Vehicle Loans represent 97.90% of our AUM, limiting product diversity.
• A downgrade in our credit ratings could raise borrowing costs and impact financing.
• Asset-liability mismatches may threaten our liquidity and profitability.
• Negative cash flows in recent years could hinder our operational capabilities and growth.
• Employee disputes or demands for higher pay could disrupt our operations.
• Timely access to cost-effective funding is essential for our business stability.
• Concentrated operations in six Indian states make company vulnerable to regional risks.
• Promoters may have acquired Equity Shares below the Issue Price.
• Competing effectively in a dynamic market is vital to company financial health.

11. Manaba Finance IPO – GMP

According to market observers, the Manba Fianance IPO shares are available at a premium of ₹60 in the grey market as on 22 September 2024.

The Grey Market Premium (GMP) term is used in IPO market to dettermine an estimated price of the issuer.

Disclaimer: No content on this website should be treated as investment advice. All the content offered on the website is for informational purposes only. Please contact your adviser before making an investment.