Manba Finance Shares Close At 31% Premium Over Issue Price

The share price of Manba Finance Ltd. closed on the BSE on Monday at Rs 157.45 apiece, a premium of 31.2% over the issue price of Rs 120 apiece. The stock closed at Rs 145 per share on the National Stock Exchange, marking a premium of 26.9%.

The stock had debuted at a premium of 25% at Rs 150 apiece on the BSE and at Rs 145 per share on the NSE, marking a premium of 20.8%.

The initial public offering was subscribed 224.10 times on Wednesday, making it the second largest book building subscription of the year. The company was aiming to raise up to Rs 150.84 crore from the IPO, which was an entirely fresh issue of 1.26 crore shares.

Part of the proceeds from the fresh issue will be used to augment the capital base, to meet the company’s future capital requirements.

"There are three states in which we've just started in the last year, so our first focus is to penetrate these states," said Manish Shah, managing director of Manba Finance. "Then our target is to spread products like small business loans, used car loans, and three-wheeler loans that will support the company."

When it comes to medium-term plans, focus will be on entering the affordable housing finance segment, which will also give incremental support to the assets under management, he said.

Manba Finance gives loans for three-wheelers, electric three-wheelers, used cars and small businesses. The NBFC also offers top-ups and personal loans for existing customers.

The company is present in Maharashtra, Gujarat and Rajasthan, and has recently expanded its presence to Chhattisgarh, Madhya Pradesh and Uttar Pradesh. Hem Securities is the sole lead manager to the issue.